Why did Ali and Tencent start to lay out insurance vigorously? Is insurance really so profitable?

The subject's question is divided into two parts, one is why Ali and Tencent arrange insurance, and the other is the insurance industry.

Tencent and Ali layout insurance I think there are the following reasons:

Internet plus's finance is imperative, and the giants enter the market in advance to occupy the pit. The mobile Internet has changed many industries, but the financial industry has changed relatively slowly. As a branch of the financial industry, insurance is also the same. According to the development trend of the industry, the combination of Internet and finance is imperative. Tencent and Ali, who want to build Internet infrastructure, can't help but get involved. The vigorous layout of the two companies is nothing more than entering the market in advance to occupy the pit.

Insurance is just one of the realization of massive users and traffic. The similarity between the two giants is that they both have a large number of users and traffic, and they also have corresponding payment services. Nature, how to use it and how to realize it is a problem. We can see that the payment business scope of Tencent and Ali has been expanding in recent years, not only insurance, but also financial management in the form of Yu 'ebao, all of which are within the business scope of the giants. Therefore, insurance is only one of the channels for giants to realize cash;

Both payment services are related to insurance. Payment and insurance belong to the category of financial industry, and they are naturally related. At the same time, domestic insurance belongs to the direct selling industry and needs direct access to users, which coincides with the business scenario of the giant ToC. Giants use payment platforms to sell insurance with half the effort. The most obvious example is Zhongan Insurance, which has only been established for six years and is a unicorn on the Internet.

There is no doubt about this, just look at the top five listed insurance companies in China. In 20 18, the net profits attributable to shareholders of the parent company were 107404 billion yuan, 7.922 billion yuan,1801900 million yuan and130, respectively. Baidu's annual revenue last year just exceeded 654.38+000 billion. Think about how much money insurance can make.

Thank you for inviting me! !

Real and profitable.

1, caused by industry trends

The 20 15 internet insurance industry research report shows that there are more than 100 insurance companies engaged in internet insurance business, and the internet insurance premium income is expected to exceed17 billion yuan. The premium income is twice that of 20 14, so it is a tangible achievement for Internet giants such as Ali and Tencent to enter the insurance field.

And from the trend point of view, the insurance industry has also reached the moment of transformation.

For example, some large insurance companies have their own online insurance malls, and users can directly place orders to purchase insurance.

Taikang Online, a subsidiary of Taikang Group, integrates into many Internet scenarios, such as pets, e-commerce, logistics, business travel, corporate property, investment and wealth management, consumer finance and other fields, and develops online insurance with the power of big data.

2. Internet insurance is a big cake under Internet finance.

A large industry giant like Ping An can maintain rapid growth every year, which shows the potential of the entire insurance market.

The cake is very big, but it's a bit difficult to separate. It needs some special means, such as "Internet plus insurance".

Secondly, now that the Internet is rich, it needs to find new investment opportunities, and relying solely on consumption, Internet giants feel that they are not doing well enough, and these trapped traffic must be transformed faster and more efficiently.

At this time, the insurance business needs to be upgraded under the catalysis of the middle class health insurance consumption upgrade.

Therefore, under the condition that its own traffic has mature conversion ability, insurance business can easily realize traffic realization.

Moreover, for the three major financial sectors of banking, securities and insurance, insurance has the most inclusive finance attribute, which can be regarded as hitting it off with the Internet traffic giants.

In addition, the handling fee of internet insurance is very considerable, and consumers naturally distrust offline insurance agents and prefer to buy online, which makes internet companies more willing to join the golden pool of insurance industry.

I am a wild boar, I will answer!

The insurance business is good, and it is really profitable. Ali and Tencent's layout insurance is a concrete manifestation of capital's use of superior resources for profit!

How to understand it? I will elaborate from the following two aspects:

The three pillars of the financial sector are banking, securities and insurance. In order to facilitate management, China merged CBRC and CIRC into China Banking Regulatory Commission. I don't know if you have noticed that banks and insurance make money in a very similar way.

Banks use the interest difference between deposits and loans to make money. And insurance is to make money by using the sum of dead difference, spread and fee difference. I believe everyone knows the principle of making money from the deposit-loan spread of banks. But what are the dead difference, spread and fee difference of insurance?

Let's look at the definition:

Do you feel more dizzy? It is best to use the vernacular as an example.

Interest spread: suppose the insurance company is going to invest in a project, and after pre-calculation by professionals, it is thought that it can earn 5 points, that is, 5%. As a result, by the end of the year, a statistic found that 8 points were earned, that is, 8%, so the extra 3 points were called spreads; If by the end of the year, it is found that only two points have been earned, which is three points worse than the predicted five points. The three points of this difference are called spread loss.

Among these three differences, the death difference is calculated according to the empirical life table of domestic life insurance industry, and everyone is the same. Therefore, the calculation gap between insurance companies is very small, and the fee difference is an index reflecting the management level of an insurance company, and the gap between companies begins to widen. The spread is an index reflecting the investment profitability of insurance companies, and there is a big gap between them. The index that determines the main profit and loss of an insurance company is the spread.

The difference between deposits and loans of banks is dead, which means that the loan interest rate is definitely higher than the deposit interest rate. Only in this way can banks make money. Different from banks, the three differences of insurance companies are floating, and actuaries need to use the law of large numbers to calculate according to big data, because insurance claims often have to be paid for more than ten or even decades. Over time, many conditions will change. Therefore, it is very important to determine the insurance rate. Carelessness may lead to a change from profit to loss. At this time, it is necessary to readjust the rate to ensure that the insurance company has money to earn. This is why the products of insurance companies often have upgraded versions listed, while the old versions have withdrawn from the rivers and lakes.

The probability of winning or losing all kinds of gambling tools in casinos, and the probability of insurance companies operating all kinds of risks. As long as this probability is calculated accurately, you will make money. Capitalists like to run insurance companies as much as they like to run casinos.

There are more than 800 million netizens in China, which is unmatched by traditional insurance.

2. The mainstream of customers in the insurance market has shifted from post-70s to post-80s and post-90s.

People of this age group are increasingly accepting online transactions. Because of their aversion to traditional insurance sales methods, they prefer to search, analyze, judge and buy independently on the Internet. Internet insurance is also unlikely to be exaggerated, misleading sales and other violations.

3. Internet companies with high-tech R&D advantages.

With the development of science and technology, the capabilities of big data and cloud computing are rising, especially the breakthrough of artificial intelligence technology is worth looking forward to. Internet insurance companies have advantages over traditional insurance companies in underwriting, compensation, rate setting, insurance research and development, and investment direction.

4. Reduce costs.

The disadvantages of traditional insurance sales are increasingly prominent. The payment of the agent's commission, the professional training of the agent team and the welfare treatment required by the agent have brought extremely high costs to the traditional insurance company. Internet insurance can greatly omit the cost of this piece.

Capital is profit-seeking, not to mention controlling the flow of tourists and high-tech capital. I predict that in the near future, Internet insurance will definitely replace traditional insurance companies.

I am a wild boar, I hope the answer will satisfy you!

You may need to know some data about how much money insurance can make.

In 20 19, there were 28 insurance companies in Fortune Global 500, and in 20 18, the number was 30.

Among them, Ann, the number one insurance company, made a profit of $654.38+600 million last year. Maybe everyone has no idea about this $6543.8+600 million.

But everyone knows about Sinopec! Everyone should know that Sinopec, a state-owned enterprise, is very profitable, but its annual profit is only $58 million, which means that the annual profit of an insurance company is nearly three times that of Sinopec.

In addition to Sinopec, there is also the State Grid. Some time ago, I also brushed "How strong is the national grid?" But his annual profit is $80 million, half of Ann's.

From this aspect, you may know how much money the insurance industry earns!

Maybe everyone thinks that he didn't buy insurance, so how can he make so much money? But in fact, unless you are completely out of touch with the outside world, you have contributed to insurance to some extent.

When we go to school, the school will ask us to buy an accident insurance. But for my own protection, I basically buy it every year when I go to school, including now I go to work, and I will also buy an accident insurance for myself.

When we work, social security has five insurances, which are also insurance; If we buy things online, there will be freight insurance. Sometimes we buy this freight insurance ourselves, and some are given by the store. If you buy a car, you need to buy auto insurance to get on the road; Workers on the construction site also need accident insurance in high-risk industries, and so on. Every aspect of life has the shadow of insurance.

After the population base is large, even if there is no talent of 1 yuan, it will be a big cake of1400 million.

The above two articles talk about how much money insurance earns, but everyone should also know how much money Ali and Tencent earn.

Businessmen have a keen sense of smell, and they can all perceive the money made by the insurance industry. Coupled with the trend of national policies, they definitely need to share this big cake, so it is not difficult to imagine that they will arrange insurance.

With the development of Internet, insurance is still profitable, because insurance is almost a necessity. You can save a lot of trouble if you buy it. If you don't buy it, you can only hope that nothing will happen.

The advantage of internet insurance is that it is convenient. Procedures can be done online, payment can also be done online, and claims can also be done online. In other words, it is an insurance company without a physical store.

Maybe it will become a mainstream way in the future. After all, people want to spend as little energy as possible on these things. However, the claim will eventually become a problem. How insurance companies do better and better in claims settlement is the key to compete for the market, not a little premium.

Even small and medium-sized insurance companies have high annual premium income.

In 20 17 years, companies closely related to your life are linked to insurance companies. The courier received, the house to live in, the taxi and social travel App, and one or several insurance companies are hidden behind each company. Owning an insurance company is not only a symbol of strength and foresight, but also means that enterprises have more say in future competition. These new insurance companies are different from the first generation of traditional insurance companies in China that appeared in 1990s. Most of these new insurance companies originated from internet companies, and they first launched the card war to avoid missing the industry dividend.

10 On June 5438+05, Weimin Insurance Agency Company was approved by the China Insurance Regulatory Commission to operate insurance product sales agency business. This company is a joint venture between Tencent and Fubon Property Insurance, a Taiwan-funded enterprise. Tencent holds 57.8% of the shares and is the largest shareholder; Fubon Property Insurance holds 365,438+0.1%,making it the second largest shareholder. In fact, a few years ago, Tencent established Zhongan Insurance, an Internet insurance company, together with shareholders such as Ali and Ping An. This company just went public in Hong Kong at the end of September, and its current market value is10 billion.

10 June 13, Shentong Express and Dayun Co., Ltd. announced that they planned to jointly establish Zhongbang Logistics Insurance Co., Ltd. with a total registered capital of10 billion yuan. According to the shareholding structure, besides Shentong and Dayun, Tong Yuan and Zhongtong are also among the shareholders. The four companies invested 65.438+0.6 billion yuan respectively, and each held 654.38+0.6% equity of Zhongbang Insurance.

In addition to the above companies, Ant Financial also established an insurance division at the end of 20 15. Later, he controlled Cathay Pacific Property Insurance with a shareholding ratio of 565,438+0%, and initiated the establishment of Mei Xin Mutual Life Insurance Society. 2065438+In April 2006, Alibaba Group and China Taiping, Taiping Life Insurance and other enterprises established Ali Health Insurance Company to engage in Internet health insurance related business. 2065438+August 2006, Fosun United Health Insurance initiated by Fosun Group and several shareholders was approved to be established with a registered capital of 500 million yuan.

Even small and medium-sized insurance companies have high annual premium income. In recent years, the premium income of the insurance industry has continued to rise, which has also attracted more attention from investors, traditional enterprises, internet and financial groups, who have applied for the establishment of insurance companies.

First of all, insurance is a necessary business for large-scale integrated financial groups to do ecological circles. In finance, both Tencent and Ali have their own insurance companies, which can compete with the traditional comprehensive financial groups, not to mention the trillion market share of China's insurance industry in the future. Life insurance, property insurance and property insurance have become a battleground for military strategists. For several years, Tencent and Ali have been improving their licenses through mergers and acquisitions, joint ventures and official applications. Although Wei Min Insurance's insurance agency license is not qualified to design and develop insurance products, it can open Tencent's interactive products, such as WeChat and QQ, and sell insurance products through agency channels. If Tencent cuts into the insurance industry by virtue of its traffic advantage, then Ali cuts into insurance products by virtue of the advantages of e-commerce scenarios, such as Taobao-related return insurance.

How much the insurance agency license is worth can be perceived from a set of financial report data of Zhongan Insurance, the first Internet insurance company in China that just went public. After Zhongan obtained the license in September, 20 13, it launched a return insurance product around the risks arising from Alibaba's eco-electronic transaction. In Zhongan's 20 16 financial report, the premium income of other types of insurance is still in the forefront, accounting for13.37 million yuan, accounting for about one-third of the total premium income in 20 16. It can also be seen in Zhongan's financial report that the technical service fees paid to Ant Financial in the past three years were 22.8 million yuan, 304.7 million yuan and 437.7 million yuan respectively.

This is also the reason why four highly competitive express delivery companies set up their own insurance companies. Of course, whether it can be approved is still unknown. Once the courier company has its own insurance company, it is no longer necessary to cooperate with a third party, whether it is freight insurance, return insurance or the safety insurance of the delivery personnel themselves.

Secondly, the low-cost funds brought by insurance business are too attractive. Insurance funds are lower than the cost of banks. For an enterprise, it is more attractive to withdraw10 billion insurance funds than to open a bank's cash flow. Whether in China or around the world, the injection of tens or even hundreds of billions of insurance funds is very beneficial to the future growth and asset allocation of enterprises. Excluding the risk reserve, the investment direction of insurance capital can also be more inclined to improve the enterprise's own industrial chain and ecological circle, forming a good comprehensive financial closed loop.

Finally, quickly lock in and accumulate the first-Mover advantage. Internet insurance in China can be divided into three modes, such as innovation from the product level, including Zhongan, Umbrella, Insurance and Everyone Insurance. Some are doing third-party price comparison platforms and agent upgrades, such as micro-insurance; Others directly provide solutions such as managing insurance policies.

arrive

B

Market. Although the models of these companies can be replicated, the data and technical advantages that these companies have mastered in the long-term development process, as well as the design, operation and sales rules of Internet insurance products, all need time and error correction. Once you have mastered the operational capabilities of resources, technologies and data, the transition from customization and scenarios to intelligence is logical. In this process, the company's comprehensive talent accumulation is another soft power. Compound talents who know both insurance and technology and risk pricing of Internet insurance products will be the core competitiveness of insurance companies in the future. Whether it is Tencent, Ali or the four major express delivery companies, the accumulation of talents, technology, product operation and sales ability is the fire point of fierce confrontation in the card position war.

However, we should also see the hidden worries behind the prosperity of the industry. For example, the combination of insurance products and internet scenarios has brought greater difficulties to risk pricing. Once the risk pricing is too high, it will lose customers, and if it is too low, it will easily lead to losses. It is normal for internet insurance companies to be unprofitable now.

The agent channel sales made by internet companies in joint scenes are more of an entrance advantage. If we don't invest more in user experience and personalized smart insurance, it is likely to cause users' resentment. For example, the recent invisible sales of Ctrip's insurance products led to the collapse of the company's brand credibility overnight.

Finally, the Internet only sells small and scattered insurance policies, while large insurance policies such as health insurance and life insurance have not yet formed a scale, which also requires the cooperation of offline medical resources. This is also one of the reasons why Tencent and Ali cooperate with traditional life insurance and property insurance companies.

In the future, these new insurance companies should pay attention to how to make good use of insurance funds; And after financial and insurance products are strictly supervised by the state, how to settle down and let the insurance surname be guaranteed.

In short, insurance is a sunrise industry, and the Internet has changed the competitive format of this industry. A competitive enterprise must be an insurance company that pays more attention to consumer demand and experience. Under the industry competition, we are faced with a pile of gobbledygook-like insurance policies, and the era of information asymmetry may never return.