Case Study On Mobile Screen Insurance Business Of R Insurance Company

With the rapid development of internet technology and the changing consumer habits,internet insurance as a new business model in the insurance industry is rapidly emerging.However,insurance companies face great challenges as well as opportunities in the internet insurance market.In 2015,R Insurance Company launched a mobile phone screen insurance product using an internet sales model.This business was one of the few small non-auto insurance products launched by the company that generated premiums exceeding tens of millions of yuan annually.As an outstanding business model that is ahead of its time and can bring benefits to all parties and society as a whole,it has great changes in business models,sales channels,and other aspects compared to traditional insurance businesses.For R Insurance Company,it was a meaningful attempt.However,this business still ended in failure,with accumulated losses of over RMB 20 million.To study the reasons for the failure of this case in depth,this thesis adopts a research method combining case analysis and secondary data analysis.Firstly,by collecting relevant information and secondary data,this thesis describes in detail the operational mode,sales strategy,product design,and insurance claim process of this business.Based on this,various theories such as agency theory,insurance fraud identification and management theory,and risk management theory are applied,and the operational data of this case are analyzed and studied from a theoretical perspective.Through different theoretical perspectives,various problems encountered in this business are analyzed,and the specific manifestations of the problems and the management shortcomings of the business in its operation are summarized.This thesis,through an in-depth analysis of the case,draws important conclusions from three aspects: principal-agent,risk management,and insurance fraud control.Firstly,in the principal-agent aspect,due to the lack of effective constraint and incentive mechanisms,agents exhibit moral hazard and adverse selection problems,causing serious loss of interest to the insurance company.Secondly,in terms of risk management,the business in the case lacks the concept of risk management and fails to do a good job in risk management,risk assessment,early warning systems,and risk control strategies,leading to an inability to take timely measures when faced with problems.Finally,in terms of insurance fraud control,due to the severe lack of recognition and management of insurance fraud,the company fails to effectively prevent and deal with fraudulent behavior,ultimately resulting in business failure.Based on the above conclusions,this thesis extracts some useful insights from the case.Firstly,insurance companies should establish a sound principal-agent incentive and constraint mechanism to ensure that agents’ behavior is consistent with the interests of the company and customer needs.Secondly,companies should pay attention to risk management and ensure the effective handling of potential risks in various aspects,from business design,operation to risk control.Lastly,insurance companies should strengthen the identification and management of insurance fraud,utilizing big data,artificial intelligence,and other technological means to improve their ability to prevent fraudulent behavior.In summary,this case analysis provides valuable lessons for insurance companies in the process of developing internet insurance business,serving as an important reference for avoiding similar problems and promoting the healthy development of the insurance industry.