Analysis Of The Affects Of Internet On Insurance In The View Of Value Chain

Internet Insurance has been debated a lot in the media coverage.In 2014,the premium income of Internet Insurance has reached 85.89 billion RMB,achieving growth rate of 195%compared to the same period of last year;the visitor volume of Internet Insurance website has been more than 1.8 billion,an increase of 40%on year-on-year basis.The fast development of Internet brings insurance a cherish opportunity.Considering that there are 4 Internet Insurance companies permitted by China Insurance Regulatory Commission,which was the only one in 2014,the future of Internet Insurance is promising.This paper analyses the effect of Internet on insurance in the view of value chain.It divides the chain into four parts:insurance marketing,insurance design,insurance pricing,product operation.The mass data Internet brings to insurance help companies to get better insights on customer's mentality,design new products to fill in the blank of customers' demand and as a result,improve their core competitiveness.Different product operating models not only remove unnecessary cost of human and building,but also create connections to better realize customer value.Mobile internet has much bigger and deeper influence on the whole value chain.Demand combined with scenarios and competition across industries force companies to create more customer value.The fierce competition makes the connection,which is just a small part in value chain before,more meaningful and valuable.The focus of value chain has been on the detail rather than big parts.The cases in foreign countries may offer us some useful hints on the current model.Internet insurance started early in US.INS WEB has become the famous model of Internet insurance.However,it does not has its own core product and in consequence,this model is more a lesson than success.GEICO is a combination of online and offline insurance products and earns its success.Lifenet in Japan develops a different way,which emphasizes more on the customer demand and their initiative.Direct Line in UK transforms from a traditional insurance company marketing by telephone to an Internet Insurance company.The large number of customers from its offline channel ensure much of its success.In the end,this paper discusses the guiding significance of those cases and point out the potential trend of Internet Insurance.