Huatai, in fact, the purpose is already obvious, Zhou Fang is far from being a fool, Sister Dan is in such a hurry to invite them to be guests, she can't even wait a few more days, behind this, there must be this Wang Dong's pruning. And the purpose of his doing this is very simple...... He wanted to speed up his breakout.

Domestic insurance companies, in fact, anyone with a discerning eye can see that the big pattern has already been determined.

According to the data of China's Insurance Association, as of the end of 2018, 70% of China's property insurance market share is occupied by the four major insurance companies of People's Insurance, Ping An, Pacific and Life, and in the life insurance market, China Life, Ping An Life, Taibao Life, Huaxia Life, Xinhua Insurance, Taiping Life, Taikang Life Insurance occupy 67% of the market share, and the insurance market is generally occupied by several large insurance companies, so how to develop other small and medium-sized insurance companies?

In the previous life, McKinsey released a report "Relief and Breakthrough - The Way to Break the Situation of Small and Medium-sized Insurance Enterprises in China", which discussed and analyzed how China's small and medium-sized insurance companies can find their own way of development in the pattern of giant competition, and believes that for small and medium-sized insurance companies, the future opportunities are greater than the challenges, and small and medium-sized insurance companies should be "small and beautiful", avoid "small and complete", and have a clear understanding of their own endowments and shortcomings.

In fact, China's insurance market will maintain rapid growth in the next few years, but from the perspective of the market structure, the strong "Matthew effect" makes small and medium-sized insurance companies face many challenges.

Based on the three principles of "objectivity, quantification and dynamic", in the Chinese market environment, McKinsey defines insurance companies with a market share of less than 5% of premium income as small and medium-sized insurance companies. In the previous life, according to the industry data in 2017, the property insurance market was small and medium-sized insurance companies except for PICC property insurance, Ping An property insurance, CPIC property insurance, and China Life property insurance, and in the life insurance market, except for China Life, Ping An Life, Taibao Life Insurance, China Life Insurance, Xinhua Insurance, Taiping Life, and Taikang Life, all of them were small and medium-sized insurance companies.

When we are being sold insurance, we often hear the salesman say something like this: this is a small company, no, we are a big company!

Therefore, from the perspective of market share, China's insurance industry presents a highly concentrated form. The cake is cut into everything, in fact, there are only a few that get the lion's head. Therefore, in addition to the 6 life insurance companies and the 4 property insurance companies, if the salesman of the insurance company attacks other insurance companies, it is actually a bit too much, but he is just smaller than whom.

In terms of market size, the market size of small life insurance companies increased from 11% in 2012 to 13.56% in 2018, and the market size of small property insurance companies increased from 12.7% in 2012 to 13.77% in 2018. It can be said that in the past seven years of development, the pattern of the domestic insurance market has not changed substantially, and small and medium-sized insurance companies have failed to effectively seize the market.

From the perspective of net profit, small life insurance companies have experienced a golden period of development in 2015 and 2017, through the issuance of savings products and insurance with higher investment yields, the total net profit reached 8.7% and 6.3% respectively, but the cooling of the capital market and strong supervision in 2016 and 2018 made the net profit return to 2.3%. Smaller P&C insurers had a harder time, with net profit falling from 4.5% in 2012 to -7.7% in 2018 and a huge loss of -14.7% in 2017.

Small and medium-sized insurance companies have a low proportion of premiums, cannot form a scale effect, and the comprehensive cost ratio remains high, unable to effectively dilute expenses, and difficult to achieve breakeven in underwriting, and the profits of the entire insurance industry have always been concentrated in the hands of a few large insurance companies. However, from the perspective of insurance depth and insurance density, the domestic insurance market has great potential. Moreover, the insurance industry is especially regular, and it generally takes at least 5-7 years for an insurance company to make a profit. Therefore, although dozens of insurance companies are difficult to make profits, they are reluctant to withdraw from this emerging market, and can only find ways to maintain breakeven, many companies have adopted a more aggressive investment asset allocation model, hoping to leverage profits through investment profit margins, but the investment risks and sustainability challenges faced in the future cannot be ignored.

In this situation, small and medium-sized insurance companies can be said to be in a dilemma.

The high concentration of the insurance market is not unique to China, and it also exists in developed foreign insurance markets.

Taking rice as an example, we all say that the insurance market in the country is full of flowers, and it is true in terms of quantity, there are more than 1,000 insurance companies in the country. However, in terms of market share, the market share of the top 8 property insurance companies reached 45%, and the market share of the top 8 life insurance companies reached 39%. This is a low value in the world, but it still reflects the higher concentration of the insurance market, not to mention other countries. However, although the concentration of the insurance market in the United States is also high, it does not mean that the performance of small and medium-sized insurance companies is poor.

Looking at the insurance market from 2006 to 2016:

Property and casualty insurance: 33% and 22% of companies with premiums between 31-70 and after 70 are above the market average premium growth rate and below the market average combined ratio ratio. A typical example is the Loya Insurance Group. Life insurance: For companies with a premium size of 31-70 and after 70, the proportion of companies with a premium size higher than the market average premium size growth rate and average return on equity reached 23% and 17%. A typical example is Reliance Standard Life.

These are very strong numbers.

Therefore, the late establishment of insurance companies and the low market share do not mean that they can only accept the situation of long-term losses, the key is how to do it.

Combined with the experience of foreign "small and beautiful" insurance companies, there are three points worth learning from domestic small and medium-sized insurance companies:

First and foremost, be customer-centric. Small and medium-sized insurance companies are at a disadvantage in terms of customer acquisition, relying on third-party channels such as banks and brokerage companies, unable to fully grasp customer information, and their customer accumulation and customer analysis capabilities are also relatively weak, making it difficult to retain customers. In this case, small and medium-sized insurance companies can only win if they treat their customers sincerely and provide them with the most suitable products and services, rather than rushing to pursue rapid expansion and viral marketing. In the case of Fuso Life Insurance Company, LifeNet, for example, their goal is to create a "customer-centric" and smooth customer experience. They pay attention to customer feelings, so they show customers a high degree of transparency in terms of premium composition, commissions, and monthly operating data, which is an extremely rare form of information disclosure.

In addition, with the Internet as the core channel, LifeNet only provides five protection insurances, namely term life, disability, women's medical, general medical and cancer, with a single insurance liability, and does not provide complex products such as dividends. On the official website, LifeNet has designed a variety of comic and animated terms to help "novice" customers understand the product. Through these initiatives, LifeNet has given their customers a strong sense of belonging.

Secondly, small and medium-sized insurance companies must understand what they are good at and what they are not good at, find their own business characteristics, and establish a brand image. The product is undoubtedly the most important of the priorities, because it is the basis for driving customers to buy and retain customers.

Many large insurance companies like to do the form of "main insurance + N additional insurance", bundling a bunch of additional insurance in the main insurance for sale, and pursuing a comprehensive form. However, small and medium-sized insurance companies should not pursue the so-called comprehensiveness, but should fully investigate the most urgent and core demands of customers, design products around customer needs, return to the origin of "insurance surname insurance", maximize the interests of customers, and solve the pain points of corresponding customer groups.

For example, Banner Life, a subsidiary of the British company Legal General Insurance Company in the United States, fully considers those in the customer group who are not particularly in good health, such as those with diabetes, high blood pressure, sleep-disordered breathing, atrial fibrillation, epilepsy and other diseases, who have a strong need for insurance protection, but are difficult to insure. Banner Life has developed and designed products with flexible underwriting policies and competitive premium levels for these people with health conditions, achieving product differentiation and attracting a large number of potential customers. Through differentiated products and services, we can maximize the value of the company while bringing value to customers, which can be described as a "win-win".

After so many years of development, traditional insurance has ushered in the era of Internet +, which is the development opportunity of the times and the development opportunity of insurance. The development of big data, artificial intelligence, and cloud platforms has brought opportunities for insurance to break the shackles. Foreign insurance companies have explored and tried in this area, and many new types of insurance, new models and new ways of cooperation have emerged. The development of the domestic Internet and e-commerce is very rapid, and it does not lag behind foreign countries, and even is in a leading position in some fields.

In the future, in fact, we can already see many innovations in domestic insurance, such as intelligent underwriting, flash claims, millions of medical insurance, medical insurance that guarantees N-year renewal, the introduction of the concept of moderate disease, multiple claims for malignant tumors, and the sudden emergence of Internet insurance. However, in terms of the core interests of consumers, there is a great opportunity to innovate and resolve the long-standing contradictions between insurers and policyholders. When policyholders buy insurance, they are most worried about the problem of claims. However, if the policyholder fails to truthfully declare his or her health status at the time of application, he may encounter disputes in the claim settlement process. Although insurance companies have taken measures such as arranging physical examinations, face-to-face visits, and regular spot checks in excess of the exempt medical examination quota, policyholders under the exempt medical examination quota are still the hardest hit areas of claim disputes.

Previously, due to cost and technical constraints, it was not possible to arrange for every insured person to undergo a pre-insurance medical examination. However, with the advancement of medical insurance networking, it is gradually becoming possible to investigate the physical health status of the insured person before applying for insurance. Now some insurance companies have begun to try to obtain the medical data of policyholders through the system for some small medical insurance types, although it is not very comprehensive, and the policyholder will enter his ID card and name when applying for insurance, and he will obtain the conclusion of whether he can be insured. The conclusion is that you can insure the insurance, and then the claim will not be disputed, and the conclusion is that you can't be insured, so you can avoid the denial of the claim in the future.

This is a real innovation, which can greatly solve the problem of policyholders' trust in insurance companies.

With the deepening of the medical insurance network and the development of big data technology, it will be possible for more and more insurance types to investigate their physical health status online before applying for insurance.

The size of the insurance company will not affect the protection of the policy, and the development dilemma and solution of the domestic small and medium-sized insurance companies mentioned above are actually the insurance companies themselves, which have little to do with consumers. Whether it is a large insurance company or a small insurance company, no matter how much market share you occupy, and whether you are losing or making a profit, as long as you underwrite a policy, it will have legal effect, and then the claim must be handled according to the contract. Even in the most extreme case, the insurance company goes bankrupt, and the likelihood of the policy lapsing is zero. Yes, you read that right, it's 0.

This is related to China's insurance regulatory system, and there are three gates for the safety of our insurance policies: the "C-ROSS" regulatory rules, the insurance protection fund and the bankruptcy system. However, it is not entirely meaningless that the insurance company is doing well, which we should pay special attention to when buying short-term insurance, if the insurance company does not operate well, it is very likely that the insurance will be discontinued, then we will not be able to renew the insurance. But when we buy long-term insurance, it has nothing to do with the size and operating conditions of the underwriting insurance company. When buying long-term insurance, the core is still based on the protection and terms of the product itself, which we must always keep in mind!

All in all, small insurance companies are having a hard time, and smart ones have now begun to seek a new way out, and the Internet is the best way to break the game. Combined with the above content, as long as the Internet + is played well, small companies may not be able to leverage big leverage. The question now is how to play and who to play with? Huatai, at present, has chosen to play with the distant group.

They are actually quite smart, and now if you want to say that the Internet company with the most domestic traffic is still Yuanfang Group. The following subsidiaries, in the Internet circle, are all top companies, and they can make a small company with a small price support by casually directing the flow. But the question is, why does Yuanfang Group have to cooperate with Huatai? The previous cooperation was smooth, it does not mean that it will be smooth in the future, it has been smooth, and it does not mean that Yuanfang Group can only choose them.

It's right for small companies to work hard, but Zhou Fangyuan doesn't necessarily help them very much.

There are many small companies in China, not only small companies, but also in the current situation of Yuanfang Group, even if they are the first few large companies, they are willing to cooperate.

In fact, cooperating with large companies is more in the interests of the distant group.

It's just that this idea is just a flash, not to mention that there are a lot of unnecessary troubles to cooperate with large companies, and those large companies have quite deep backgrounds, and each of them is not simple. It's not good, let alone cooperating with others, it is possible to be bitten by others in turn when the time comes. There is no doubt that the problem of cooperating with a small company can be reduced a lot.

"It's time to eat!"

In the direction of the restaurant, Sun Jing's voice sounded.

The two men who were talking looked at each other and smiled, and at the same time, they walked and laughed, chatting, and entered the restaurant.