How do insurance companies build new business models in banks?

Establishing a mature business model is very important for the whole insurance industry, and it is more urgent to build a business model through bancassurance channels. It is necessary to design the product line of bancassurance channel with customer demand as the center, not just satisfied with the sales status at the channel end.

Recently, Xiang Junbo, Chairman of the China Insurance Regulatory Commission, made an important speech at the training course on deepening the reform of the insurance industry. He stressed that in terms of market-oriented reform, it is necessary to establish a market-oriented pricing mechanism, a capital utilization mechanism and an access and exit mechanism; In the business model, we should strengthen product innovation, channel innovation and management innovation; In the field of service, we should find the focus, breakthrough and realization path.

Establishing a mature business model is very important for the whole insurance industry, and it is more urgent to build a business model through bancassurance channels. In fact, the basic connotation of business model is to have a mature profit model and to continuously balance the interests of customers, channels and companies.

Objectively speaking, the traditional bancassurance channel has not solved this problem well. Either the bancassurance channel is the most misleading channel in sales (in essence, the interests of customers cannot be guaranteed), or it is a high-scale and low-value channel (in essence, the interests of companies cannot be guaranteed), which shows that there are great problems in the traditional bancassurance business model. A mature bank insurance business model needs to pay attention to three aspects:

First of all, we should establish a long-term cooperation mechanism between banks and insurance. At present, there are many cooperation modes of bank insurance cooperation, such as agency cooperation, strategic alliance and equity holding. The first model can easily lead everyone to focus only on immediate interests, and it is difficult to balance their respective interests.

Secondly, we should design the product line of bancassurance channel with customer demand as the center, not just satisfied with the sales status at the channel end. Focusing on the all-round requirements of customers, we can provide customers with a diversified package of wealth management solutions. Different products can take care of the interests of different parties and may eventually reach a balanced situation.

Third, it is necessary to realize the value integration of insurance services and the overall services of banks. The traditional bancassurance channel has never really solved the transformation from selling products to selling solutions. On the contrary, it is the advantage of the bancassurance channel, which should have been a package of financial services, but it has become a disadvantage by simple product comparison. To realize this change, we must embed the insurance value chain into the service chain of the bank, and truly solve the problem of two skins of the bank's main products and insurance products from the business process. The balance of interests of all parties can only be a concept if this problem is not solved.

Exploration of Bank of Communications Kanglian

As a banking company, Bank of Communications Kanglian is trying to explore and give full play to the advantages of equity cooperation, and establish a bancassurance ecology of "long-term cooperation, diversified product lines, balance of interests between companies and customers and channels".

In the construction of cooperation mechanism, the cooperation and integration between Bank of Communications and Bank of Communications Kanglian has natural advantages due to the shareholding relationship.

In terms of resource integration, by exerting a good governance structure, the customer resources, network resources, operational resources, system resources and brand resources of the parent bank will be gradually and deeply integrated with the company, and then a long-term cooperative business mechanism will be formed in important areas such as product development, team training and event management.

In the aspect of asset allocation integration, insurance allocation is actively integrated into the financial planning template of the parent bank's customer groups, and based on the analysis of ethnic characteristics, it guides customers to pay attention to safety while giving consideration to safety, liquidity and profitability, so as to realize a more reasonable allocation of family assets. At the same time, refine targeted marketing strategies and methods to guide account managers to provide customers with all-round services. Under such integration, insurance is no longer a single product, but one of the core tools of comprehensive financial planning of banks, which is the core business, thus truly taking customers as the center and realizing the substantial transformation from selling products to selling plans.

In the product line configuration, the bank development team is introduced to break the strange circle that the traditional bancassurance channel only sells wealth management insurance. The company introduces banking professionals in the product research and development stage, timely understands customer feedback in the product listing stage, and establishes a long-term communication mechanism by using modern Internet tools through meetings and offline.

In terms of customer development, step by step is the leading idea of Bank of Communications Kanglian, which is mature and open. First of all, the company develops and serves customers of bank outlets in the form of bank-insurance cooperation, and develops and serves credit card customers in the form of electricity sales cooperation. On this basis, this year, the company also set up a special team to provide comprehensive services for small business owners and their employees, that is, to explore new individual insurance types. In short, on the basis of keeping the internal management of the insurance industry highly market-oriented, we should strengthen the shortcomings of "managing customers" in the insurance industry, and we should not simply pursue the rapid accumulation of total performance to avoid the unsustainability of the customer development service model.

Suggestions on encouraging business model innovation

One suggestion is to statistically analyze the performance of insurance companies by product dimension. At present, professional media and industry associations mostly analyze statistical performance with simple channel attribution, lacking the perspective of product segmentation. In practice, they generally divide their performance by individual insurance, bancassurance, group insurance and economic agency. This is of great practical significance, but it is not conducive to encouraging channel product innovation. For example, we have developed different products for various customers of banks, such as launching borrower insurance products for retail credit customers; Ward, a private bank customer, provides pension annuity, disease health, children's education security products and financial insurance; Credit card customers are equipped with exclusive accident, serious illness and medical insurance products. In addition to wealth management insurance, these different products are naturally placed in the bancassurance channel, and other parts are not suitable for the personal insurance agent channel. It is inevitable to put it in the bancassurance channel, but due to insufficient product segmentation, the performance of the company's differentiated operation is often not seen. On the surface, it seems that a company's differentiated business strategy cannot be fully reflected, but the essence is that the performance analysis of a company mostly stays on the scale comparison, but lacks the description of business quality.

Another suggestion is that the regulatory authorities should strengthen the management of profit analysis and appropriate information disclosure of insurance companies. Under the old accounting standards, profit source analysis is an important part of actuarial report, but after the implementation of the new accounting standards, this work is weakened. Through the profit source analysis report, the expected profit, investment income deviation and management deviation of a company's product line (cost difference, surrender difference, death difference and dividend difference) are explained.

In the foreseeable time, the transparency and standardization of most insurance products will be higher and higher with the application of new technologies, especially the wisdom of the Internet will interpret insurance products more fairly, which means that insurance will face the public in a more direct and transparent way and accept the public's "comments", and a considerable number of products will become more and more homogeneous. In this case, besides the early means of price competition, how to realize the sustainable development of insurance companies? The only way out is to build your own service brand as soon as possible. Industries should have brands, and companies should also have brands. Competition will eventually enter an era of service brand competition.

Bank of Communications Kanglian's choice is to focus on health management and create a comprehensive "Bank of Communications Kanglian Life-Your Health Manager". Provide customers with integrated and all-round health management services from four aspects: health education and special consultation, health examination, sub-health intervention and online and offline medical assistance. Try our best to help customers solve the problems of "serious sub-health, worsening chronic diseases, high risk of misdiagnosis and mistreatment, and difficulty in seeing experts", so as to make customers live healthier and realize the positive growth of healthy wealth.

To build this service brand, the first focus is on concentration. You can't think that you can make a difference in a few months or six months, or even want to become famous overnight. To really do well, we must work hard for a long time. The second is to be professional. Only professional services have vitality, and it is necessary to explore the establishment of a long-term cooperation mechanism with some excellent social resources. The third is to make the cost input sustainable. We can make full use of internet technology, especially mobile internet technology, which will subvert the original cost structure and break the high cost of traditional service methods. (The author is Party Secretary and President of Bank of Communications Kanglian Life Insurance)