Competition scene, occupy the data, grab the entrance, from the insurance peep bat which is the strongest

Since mid-November, Baidu has made two major moves in the financial sector: it has announced the launch of the BITS Direct Bank with CITIC Bank; and it has announced the launch of BITS Insurance in Shanghai with Allianz Insurance and High Tier Capital. So far, the domestic Internet three giants BAT in the financial stranglehold quietly started. Baidu chose to layout the financial sector at this time, although it is inevitable to be crowned by the outside world "slow action" hat, but we may as well take Baian insurance as an example, interpretation of Baidu layout of financial highlights behind the mystery.

Allianz breaks the game, a license to take down the shackles

Allianz insurance in the Chinese market has been actively exploring, on the scale, Allianz in the global insurance giants ranked second only to the French AXA Insurance Group; on the strength of the Allianz in the Chinese market is the only one to take all the licenses for the practice of foreign companies (in addition to agricultural insurance). In terms of capability, Allianz is best known in the global insurance market for its strong actuarial and design capabilities for insurance products. But Allianz's ambitions are completely at odds with its ranking in the Chinese market in terms of premium size. Regardless of the constraints on its foreign-funded status in China's financial sector, Allianz hasn't really done a good job of unleashing its strengths since it officially entered China in 1999.

Traditional insurers must have a physical presence in the country where they do business, according to the China Insurance Regulatory Commission (CIRC). Allianz has only had a handful of eight branches in China since 1999. Whether the chicken lays the egg or the egg lays the chicken has always been a proposition that has been caught in a constant cycle of death. However, the Chinese insurance industry has always been characterized by channel as the king. Failure to take root means that business expansion is in a dead end. The share of Baian, a clear and bright solution to Allianz has been a big problem, according to the CIRC's new regulations, to obtain an Internet insurance license, which means that the scope of business through the whole country, and do not need to apply for business qualifications in accordance with the traditional insurance companies, as in accordance with the branches around the world, how can this unique advantage, how can not let the shrewd, such as Allianz, such as the foreign insurance companies think about it.

For Allianz, taking a stake in an Internet-based insurance company with a single license to cover the whole country is a direct way to loosen the reins on the scope of its business and say goodbye to the old days of dancing in shackles. With Allianz's product actuarial and design capabilities, there are few rivals in the world that can match (underwriting capacity ranked first in the world), the advantages of the Chinese market immediately obvious, the only thing it needs is to get the flow of the scene and the localization of the Chinese market, which is exactly what Baidu can provide.

Baidu breaks the game, the scene covers a wider range of data more valuable

Alibaba and Zhongan in the Internet insurance operation experiment, the most accurate conclusion is that the financial business must be bundled in the Internet scene will take root. Whether it is return shipping insurance, quality assurance insurance, or double eleven during the infamous Tmall genuine insurance, summed up in one sentence, in the absence of the Internet era, these insurance products are by no means possible to exist. But the new problem brought about by Alibaba and Zhongan, in addition to high-frequency, low-premium property insurance based on e-commerce transaction scenarios do well, in the car insurance, life insurance and other low-frequency, high-premium insurance and did not take off.

The traditional insurance industry is different from the Internet industry, with Internet companies focusing more on the number of users and traditional insurance companies focusing only on the size of premiums. This different perspective on business indicators is the fundamental reason why the premium scale of only 800 million yuan in 2014, but the number of insured cases reached 630 million, 150 million users, Zhong An Insurance valuation of $8 billion after the shock of all parties. The revenue structure of traditional insurance companies is completely opposite to that of Internet insurance companies, with life insurance accounting for the largest share of premiums, followed by auto insurance based on immediate needs, and finally other types of property insurance. For traditional insurance companies, a business that only earns users and not premiums is not a desirable outcome. And at present, based on the transaction of the Ali scene, can bring a massive number of users, can not bring the scale of premiums, the temptation is really limited.

Baidu's entry into the game gives greater imagination. Compared to the e-commerce scene with the Ali system, Baidu has a much larger flow and more diversified business scenarios, the business of non-conventional property insurance is more instructive. In terms of life insurance, the Ali system does not have medical scene traffic, which is Baidu's strengths; in terms of auto insurance, Baidu's map open frequency is enough to make it a better **** building scene, rather than insurance companies to open a flagship store of auto insurance on Tmall can be compared to the effect; Baidu's layout of Nuomi, and can even be implanted in the offline O2O scenarios based on the transaction of insurance. -Robin Li himself mentioned the example of takeaway delay insurance at the conference. As the first entrance to the Internet non-direct transaction, Baidu online life scene + offline consumption, can indeed provide enough scene traffic, and can cover such as education, medical, class B property insurance and other scenes that may generate high unit price premium customers, which is the advantage of Ali and Tencent does not have the field, the combination of these scenes and Internet insurance, with enough room to vacate.

In terms of data, Baidu can also provide stronger support. In cooperation with Ali, the insurance company can get the user as a consumer portrait data, but this portrait currently seems to be the utilization of the insurance company is not very valuable. First, the current business unit price is low, the introduction of big data is limited to help the business; second, Ali's data return is limited to the e-commerce consumer user portrait, but this part of the portrait data, the sale of high net worth products does not help. In contrast, insurance companies prefer to know the whole picture of a user's existence as a 'natural person' rather than a 'consumer'. Insurance companies have been trying to work with wearable device makers to get access to users' health data, but such attempts have yielded little results. Users are reluctant to pay for wearable devices, and the sample sizes collected are so pathetic that matching them with the insurance companies' original databases can only be described as dismal. But for Baidu, which covers more areas, the relative threshold for accessing health data is much lower. As a simple example, if a user searches for diabetes-related information in Baidu for a long time, then whether it is the understanding of the user's condition, or the ability of this user to buy chronic disease insurance risk resistance, Baidu has the data, will be more accurate than other platforms, as opposed to the user's consumer behavior, which is the data that insurance companies really care about.

Business breakthrough, Baian and other giants very different interests

Internet insurance concept debut, the earliest to be traced back to 2013 shocked the industry 'three horses in the same groove' *** with the creation of Zhong An Insurance. At that time, the insurance industry was still an unknown virgin territory for the Internet. But after two years of operation, Ali, Tencent, Ping An tripartite has clearly in the zhongan insurance, each take what they need, clear insurance business for their own value. Ali through the early spared no effort to invest and try, has seen the insurance business in its huge e-commerce scene of great potential, deep plowing insurance is the inevitable choice. And zhongan insurance two years since 90% of premiums from ali system this cruel result, also let tencent realize by their own scene limitations, its main business and the combination of insurance, in the short term will not have a big breakthrough, a better choice is the internet insurance business as a long-term financial investment: one can get the dividends of the development of the internet insurance, and two layout in advance to avoid falling behind in the future. As for the insurance giant Ping An, its stake in Zhong'an has allowed it to see the strong vitality of the traditional insurance industry in terms of capital market and business coverage that can emerge after the deepening of the Internet. Improving the organization with the concept and operation of "Internet insurance" and making business breakthroughs by entering more Internet scenarios are core competencies that traditional financial giants like Ping An are eager to get to differentiate themselves from their peers.

In short, Zhongan's exploration has put a perfect exclamation point on Internet insurance. No matter from what role and way to participate in this feast, will benefit greatly from it. With that in mind, the joining of Allianz and Baidu, the temporary loser among the giants in the Chinese market, is a foregone conclusion. The access of Gao Tiling's capital has raised the tone of this cooperation to another level: Baidu's insurance work with Allianz is a combination of traditional data gurus and Internet data gurus in desperate need of new tricks to catch up with the leaders, and Gao Tiling's participation defines this as a startup with high performance requirements and a need for returns, rather than a giant extension of its tentacles, in the interests of its shareholders.

The 1.0 era of Internet insurance is that each insurance company builds its own platform to sell all kinds of traditional insurance in a B2C way, and the only way to attract traffic is to do SEM placement on external platforms. This way compared to offline channels, can only be a needle in a haystack, there is a single count a single. Ali started the scene bundled Internet insurance 2.0 era, in the transaction to let the user to buy, can let the insurance company scale mass customer acquisition, but a few cents or even a few pennies per single premium, the insurance company's business scale does not have a substantial impact. However, these two models, the former is limited by the flow, can not make the user scale; the latter is limited by a single e-commerce scene, can not make the premium scale. For insurance companies, neither is the best result. The key point of the Internet insurance business breakthrough is the urgent need for a huge traffic and more dimensions of the scene of the giant, at least from the current point of view, the BAT three giants, Baidu still looks like so much, and has not yet been down to test the water.

Bai'an listing, Baidu whether to think of a good financial play and layout?

In the last month, Baidu has suddenly struck a double blow with Baidu Banks and Baian Insurance, leaving many in the financial industry looking on. Before this, Baidu has always given the industry an impression that it is quite intentional in the field of Internet finance, but careful. Since 2013, Baidu has announced a series of cooperation programs with financial giants such as Ping An of China, Huaxia Fund, Industrial Bank, Bank of China and Industrial and Commercial Bank of China. However, the establishment of Bai'an Insurance and Baixin Bank has taken a different approach, and has chosen to join hands with financial giants that have never worked together before*** to build. This shift means that Baidu may really see clearly, their own layout and play in the Internet finance.

Ali and Tencent in the field of Internet finance to jump ahead of the start, the results are great, the disillusionment is also not a lot. The outbreak of the balance of the treasure attracted the attention of the financial regulators, Internet insurance in the e-commerce transactions outside the scene and then no highlights, the rise of Zhong'an let Ali left and right fight each other, Tencent with the crowd of WeChat traffic can not recreate the breakthrough. It is not an exaggeration to say that Ali and Tencent in the field of Internet finance, for Baidu to pay enough tuition, stepped on enough deep pit. What can be done, which can not be done, what is the result of doing it, Baidu in the two years of inaction has seen enough scenery, if you do not want to think clearly, categorically impossible to participate in the way of capital to send new shoots. For Baidu, the user's social occurs in Tencent, the user's consumption occurs in Ali, but the user's other behaviors, all occur in Baidu. Output of their own big data and cloud computing capabilities, supplemented by financial services for product design and scene mining, Internet insurance is the most appropriate experimental field, but also to avoid the Ali Tencent trips through so many deep pits of the only path.

Since 2015, Baidu has actually been moving quite a bit, and Nuomi's 'second in the industry' has created a lot of drama, but it has also really elevated Baidu's wallet support for the financial business to a new era. The establishment of Baixin Bank is adding another stepping stone to the gradually plumping base around payments. The sudden arrival of Bai'an insurance, is the third time that Baidu layout of the Internet financial determination as well as business entry point, such a breakthrough trip, there is a reason to attract a crowd of spectators.