Research On UBI Insurance Business Model Innovation Based On Blue Ocean Strategy Theory

Motor vehicle insurance has always been the pillar of China’s property insurance market,and its premium income is the main part of the property insurance premium income.Therefore,CBRC has gradually implemented the reform of commercial auto insurance rate since 2015,giving auto insurance companies independent pricing authority.At the same time,with the improvement of residents’ income level and knowledge level and the enrichment of goods and services,consumers pay more attention to the personality characteristics of auto insurance products.The rise of big data and Internet of vehicles technology facilitates the acquisition of data on drivers’ driving behavior,driving mileage and road environment,and provides technical support for insurance pricing,claims settlement and customer selection.Therefore,personalized UBI insurance based on the driving behavior and vehicle use of car owners has begun to appear,which has been effective in solving the problems of unreasonable pricing of auto insurance,serious homogeneity of products,moral hazard and adverse selection.However,UBI auto insurance has not been carried out on a large scale in our country because the reform of auto insurance rate is still in the pilot and the UBL business model needs to be further improved.In this context,based on domestic and foreign UBI auto insurance related research,this paper introduces and analyzes the reasons for the rise of UBI auto insurance in China,as well as the types and existing problems of UBI business model in China.It also discusses the feasibility of UBI business model innovation in combination with the macro and micro environment of UBI auto insurance in our country.Taking Metromile,an American UBI unicorn,as an example,it discusses the great significance of business model innovation to the development of UBI insurance.It analyzes its business model innovation process from multiple perspectives through the Blue Ocean strategy theory.The utility and cost value innovation path,differentiation strategy and customized cost control value growth process are analyzed through the long tail theory.Finally,based on the above analysis and combined with the development status of China’s traditional auto insurance industry,this paper puts forward some thoughts on UBI business model innovation of China’s insurance companies.