According to the Internet Insurance Industry Development Report released by China Insurance Association at the beginning of 20 15, there are 44 life insurance companies and 6 property insurance companies 16, accounting for 45% of the 33 family life insurance companies in the whole industry15. Many insurance companies, including China PICC P&C Insurance Company, Taikang Life Insurance Company, China Insurance Company, Ping An Life Insurance Company of China Insurance Company, Pacific Insurance Company and Tianan Property Insurance Company, have taken the lead in online staking, and the deep integration of China insurance companies and the Internet has come in an all-round way.

First of all, at the regulatory level, last month, the long-awaited Interim Measures for the Supervision of Internet Insurance Business was finally issued by the China Insurance Regulatory Commission, which marked the formation of the basic regulatory norms for Internet insurance business in China. The "Measures" take encouraging innovation, preventing risks and protecting consumers' rights and interests as the basic ideas, and clarify the basic rules of Internet insurance business operation from the aspects of operating conditions, operating areas, information disclosure, supervision and management. It is stipulated that insurance business activities such as sales, underwriting, claims settlement, surrender, complaint handling and customer service of Internet insurance business should be managed by insurance institutions; The contents and methods of information disclosure and notification obligations of business entities have been strengthened, and efforts have been made to solve problems such as information opacity and information asymmetry that may exist in online independent transactions, so as to protect consumers' right to know and choose to the maximum extent.

Secondly, as for the subject matter of insurance, as early as 20 13, China PICC launched the "Pocket PICC", which claims to be within reach of insurance; Last year, the Tianan Property Insurance "Che Yi Compensation" APP with the slogan "Simple Claims, Just in Tianan" was launched nationwide; Subsequently, online insurance service platforms such as China Pacific Insurance, Dida Bao Tong and Taikang Online sprang up like mushrooms after rain. It can be seen that fighting for service and experience has become the main direction of competition among insurance entities. At the same time, while basing themselves on insurance, various insurance companies are constantly extending from channels to the periphery, and cooperating with P2P platforms and credit guarantee institutions to varying degrees. The following is the top 15 list obtained by insurance association of china after evaluating 60 property insurance and life insurance companies providing internet services in 20 14 from three aspects: service innovation, technological innovation and channel innovation:

Second, the risks behind Internet insurance innovation

It should be said that Internet insurance innovation based on improving customer experience is in the right direction. As a new field, Internet insurance has huge development space, but at the same time, Internet insurance innovation has also brought a series of risks and problems. Judging from the risks that have been exposed at present, they mainly include the innovation of insurance products, the sharp increase of consumer complaints, the expansion of consumer moral hazard exposure, and the inadequate risk assessment and control.

(A) insurance product innovation ectopic

Zhongan Online, invested by Sanma, has promoted the innovation upsurge of insurance products of major domestic insurance entities since its establishment at the end of October-March. Innovative insurance products such as brush theft insurance, high temperature insurance, return insurance, hemp drinking insurance and World Cup football hooliganism insurance are constantly emerging. Life insurance companies have also launched so-called "attracting jade" products based on WeChat platform, such as finding relatives, upgrading love, lifebuoy and so on. Names are getting more and more fancy. Among them, some insurance products have begun to take shape, but more are innovative for innovation. For example, the World Cup football hooliganism insurance didn't sell a few copies from beginning to end, which made it cheaper by 3 yuan/copy. Later, the price was directly reduced to 1 cent/copy, which completely became a stunt. What's more, the development of smog insurance, moon viewing insurance and lottery insurance. Seriously divorced from the essence of insurance.

(B) the sharp increase in consumer complaints

According to the "Notice on the Complaints of Insurance Consumers in the First Half of 20 15" recently issued by China Insurance Regulatory Commission, the total number of calls to the complaint hotline of China Insurance Regulatory Commission 157544 in the first half of 20 12378 was 157544, up 40.24% year-on-year. Among them, complaints about bundling Internet products account for a certain proportion. The reason is that the internet insurance business of many insurance entities has developed rapidly, but the management and service capabilities are seriously insufficient. They pay one-sided attention to the networking of sales front-end, but the background operation management is still traditional thinking. The mismatch between the front end and the back end makes it easy to retreat when buying, which leads to consumer complaints.

(C) the expansion of consumer moral hazard exposure

At present, all insurance entities have basically introduced simple compensation in claims service, that is, insurance companies implement simple compensation for insurance accidents below a certain amount (ranging from 2000- 10000 yuan), and consumers transmit the accident scene information to the insurance company's background through the APP platform launched by the insurance company, or take photos or videos, and the insurance company will pay immediately after verification. The whole process is generally completed in about 5 minutes. It should be said that this practice greatly simplifies the claim settlement procedure, shortens the claim settlement time and is convenient for consumers. However, objectively speaking, we also have to face the current domestic basic situation, the average moral level of the people needs to be improved, repair shops and 4S stores organize large-scale fraud, and insurance fraud emerges one after another, which will undoubtedly expand the risk exposure of insurance companies indefinitely.

Risk assessment and management are not in place.

Insurance is essentially a risk transfer arrangement, which should be supported by quantifiable data. At present, many product innovations lack basic procedures such as rate determination and cost calculation. At the same time, insurance stresses the law of large numbers. If a product can't have a certain scale, the level of compensation will be extremely unstable, and risk management will be out of the question.

Third, the risk management innovation of Internet insurance

(A) Insurance product innovation: return to the essence

Insurance, in the sense of law and economics, is a way of risk management. Therefore, the basic principle and bottom line of insurance product innovation is that innovative products have the possibility of risk management, that is, the risk of insurance subject matter can be reduced through the accumulation of experience and effective management measures. This is the fundamental reason why force majeure such as earthquakes and hurricanes are not covered by insurance under normal circumstances, because so far, human beings have not been able to influence the occurrence of the above events through their own actions. On the other hand, the current insurance product innovations, such as smog insurance, moon viewing insurance and even high temperature insurance, have basically broken through the above basic principles.

I think there are two main reasons for this situation. One is insurance itself. At present, the homogenization of large-scale products is very serious in the insurance market, with basically the same terms, basically the same rates and basically the same services. In this case, the goal of product innovation is no longer the "demand" of customers, but the "eyeball" of customers. I remember that a few years ago, an insurance company developed an insurance called "drunk driving insurance", but it didn't sell a policy from beginning to end, but the whole company was very happy because this product attracted great attention from the news media, regulatory authorities, peer companies and consumers at that time, which greatly improved the company's popularity. Second, it is related to the overall social environment. At present, from the collective to the individual, under the command of material and economy, every social organization and cell is trying to obtain as many resources as possible, ignoring the utility and value of the resources themselves. As the saying goes, when you walk, you forget the purpose of your departure.

(b) Insurance risk management: big data as a tool

1. Application of Big Data in Rate Determination. The determination of policy rate is the source of risk management of insurance companies, and it is also a very important work. The main purpose is to make the set rate correspond to the risk level of the insured. The smaller the risk, the lower the rate, and try to be fair. The key problem in determining the rate is to find out the "risk factors or variables that affect the compensation expenditure". In fact, life table is a classification of "risk factors or variables that affect compensation expenditure". For another example, in auto insurance pricing, urban traffic congestion, driver's age, driving experience, gender and car age may all be "risk factors or variables affecting compensation expenses", which can be determined by analyzing and processing a large number of data.

2. The application of big data in risk assessment. In the era of big data, risk assessment is not limited to the historical data of companies and industries, and it is more convenient to describe risk characteristics and obtain data resources. First of all, in the field of auto insurance, which accounts for more than 70% of the property insurance market, insurance companies can obtain three levels of data to support risk assessment. The first layer is the core layer, including company and industry data, and the second layer is the compact layer, including data such as vehicle types, car zero ratio and used cars; The third layer is the peripheral mobile layer, which includes collecting driver behavior data through vehicle-mounted sensing equipment. At the same time, for actuaries of insurance companies, more and wider data collection can more accurately identify the potential risks of individual objects, establish more effective data models, continuously improve and improve actuarial accuracy, and help to judge and evaluate risks and risk reserves.

3. The application of big data in anti-claim fraud. Under the condition of ensuring data resources, it should be the main direction of anti-claims fraud in the future to identify possible fraud patterns, potential fraudulent behaviors of claimants and possible fraud chains through complete and diversified data (including but not limited to internal insurance policies and claims history, industry data, credit records, public social network data, criminal records, etc.). ), supplemented by effective algorithms and models. For the whole insurance industry in China, it is the key to prevent claims fraud to establish an industry-level insurance data information platform as soon as possible. At present, Shanghai, Jiangsu and other provinces and cities have realized the sharing of claims information and data, and the effectiveness of anti-claims fraud in these areas has been significantly improved.

4. The core of big data application in insurance risk management-data integration. At present, the data of insurance companies include peer data of industry platform, data of front-end customer APP import (or on-site billing), data of middle-end intermediary, channels, claims and telephone, data of back-end financial revenue and expenditure, in addition to auto parts data of pricing system, personnel data of personnel system, and risk control data of audit risk control system. , varied and complicated. Therefore, it is urgent to establish a big data platform for data integration, unify data storage and transmission standards, and integrate different systems.

(c) Insurance risk control: application of new technologies

In the future, the application of new technology and new equipment will become the main way of risk control in the insurance industry. In the process of underwriting, data analysis technology based on big data will present the data and characteristics of the subject matter of insurance at the first time, provide first-hand information for underwriting decisions and policies, and control risks from the source. In the process of claim settlement, new technologies and new equipment will also be widely used. In the field of vehicle insurance, the static and dynamic information extraction and behavior recording of vehicles, roads and drivers are realized by using wireless electronic equipment and communication networks loaded on vehicles, so as to supervise the driver's behavioral risk and moral risk, and carry out pre-accident prevention, accident response and post-accident treatment, so as to make insurance accident management become passive and active, and reduce the cost of claim settlement. In the field of life insurance, wearable devices that can monitor human health in real time can be used to obtain and subdivide the human health status and the probability of life and death of different groups of people and different age groups, and provide customers with suggestions on diet and fitness in time, thus reducing the medical expenses of the insured. In the field of family property insurance, the smart home system is used to remotely monitor the residence, so as to find and resolve risks in time. When the gas leaks or the water pipe bursts at home, the valve can be closed automatically, thus reducing the loss.

The development of everything must have corresponding supporting management measures, and Internet insurance innovation is no exception. For a long time to come, Internet insurance innovation will be on the road, and risk management based on Internet insurance innovation will also follow closely.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.