Under the general trend of transformation and upgrading of the insurance industry, how do insurance companies realize operation

Operational data of the insurance industry released by the CBIRC shows that the property insurance business realized premium income of 620.7 billion yuan in the first half of 2020, up 5.33% year-on-year, and the growth rate was 2.96% lower than that of the same period last year. This is related to the epidemic impact and economic downturn, but also related to the property insurance industry gradually shifted from the stage of high-speed growth to the stage of high-quality development.

In the property insurance industry's new journey towards high-quality development, the CBIRC has duly issued the "Three-Year Action Plan for Promoting the High-Quality Development of the Property Insurance Industry (2020-2022)" (hereinafter referred to as the "Plan"), which seeks to realize the transformation and development of the industry, the ability to serve the national economy and people's livelihoods, the level of openness to the outside world and the international community in three years' time. The program strives to achieve the transformation and development of the industry, the ability to serve the national economy and people's livelihood in three years, and the level of openness and international influence.

It is worth noting that in order to accelerate the transformation and upgrading of the industry, the program is comprehensively deployed from the three dimensions of the structure of insurance, the development of kinetic energy, and the role of the function to promote the formation of a reasonable structure, abundant kinetic energy, and complete function of the property insurance market system.

1, the structure of insurance: from auto insurance to auto insurance, non-auto insurance development and shift

In the first half of 2020, auto insurance premium income of 408.2 billion yuan, accounting for 65.76% of the total premiums in the property insurance; liability insurance, agricultural insurance, warranty insurance, corporate property insurance and other non-auto insurance **** accounted for about one-third. At the same time, the first half of the premium growth rate of auto insurance has fallen to 2.92%, compared with growth of 21.75% of agricultural insurance, growth of 14.32% of liability insurance has just lost the property insurance growth rate contributing to the status of the main force.

Previously, auto insurance, as the first major type of insurance, has been the property and casualty insurance industry's high-speed growth of the "bearer"; many property and casualty insurance companies are highly dependent on auto insurance, but also created the property and casualty insurance industry's insurance structure is out of whack. A reasonable insurance structure is crucial for insurers to avoid business risks and sustain healthy development; looking at the international insurance market, one of the symbols of a strong insurance market is that the links and ratios between insurance types form a reasonable structure in accordance with the principle of combining social and economic benefits. This is the reason why the program puts forward "to automobile insurance, non-automobile insurance and shift".

This will guide property insurance companies to tilt towards non-automobile insurance, on the one hand, continue to optimize the structure of the non-automobile insurance business stock, on the other hand, strive to develop and promote new types of insurance, in order to fully satisfy the needs of other property protection, and to provide comprehensive and multi-level insurance protection for the community's property. This will also change the sloppy business model of the property insurance industry, reverse the dilemma of the increasingly fierce price war in the auto insurance market, and promote the non-auto insurance market to take the pace of blossoming. I believe that property insurance companies out of the comfort zone of auto insurance, but also will usher in a broad market space.

2, the development of kinetic energy: from sales-driven to product-service-driven transformation

Previously, under the guidance of the two major goals of insurance depth and insurance density, China's property and casualty insurance industry has long pursued a sales-driven development ideas. This is one of the reasons why China is the world's second-largest insurance market, but also one of the challenges for the property and casualty insurance industry to transform into high-quality development.

Under the traditional sales-driven model, property and casualty insurance companies have relied on the "sea of people" sales model. Along with the high mobility of insurance personnel, the complexity of property and casualty insurance products has also shaped the business model of "sales before service" and "sales before service", and even induced the phenomenon of misleading and deceiving consumers in the insurance sales process.

In fact, in the sales process, property insurance is not only a paper contract, but also the contractual insurance protection, contract preservation, disaster prevention and mitigation services. In order to change the development mode of "focusing on the scale of premiums, light service quality", the program grasps the innovation drive as the key to promoting high-quality development, and focuses on promoting the transformation of property insurance to service-driven.

For insurance personnel, it is necessary to abandon the sales mindset that "insurance is sold, not bought"; for property and casualty insurance companies, on the one hand, they should strengthen the concept of service and service management, optimize service means and service products, and on the other hand, they can also develop their product lines based on the long-tail effect to provide consumers with diversified services. The company should strengthen its service concept and service management, and optimize its service means and service products.

3. Functional role: upgrading from traditional economic compensation to risk management and value-added services

Economic compensation is the basic function of property insurance, which gives it the functions of economic "shock absorber" and social "stabilizer". In order to better fulfill these two functions, the program puts forward the high-quality development direction of upgrading to risk management and value-added services with a long-term perspective.

The program takes "insisting on returning to risk protection" as the basic principle, and on the one hand, it puts forward the general objectives of property insurance companies' comprehensive risk ratings being above Class B, property insurance becoming an important means of enterprise risk management and residents' risk protection, and prominent risks being effectively resolved and disposed of by 2022, and on the other hand, it accelerates the reinsurance market, prevents and resolves risks and provides a comprehensive and comprehensive risk management service. On the other hand, from accelerating the reinsurance market, preventing and resolving risks and other aspects of the deployment, to give better play to the functional role of insurance as a basic means of risk management in a market economy.

The program also focuses on guiding property and casualty insurance companies to develop value-added services to help product service-driven development of the property and casualty insurance industry. Specifically, property and casualty insurance companies can provide value-added services such as risk consulting, green claims channel, accident advance payment, etc. For example, airport lounges can be arranged for avionic insurance, travel insurance can increase the number of services such as travel rescue and high-speed rail lounges, and automobile insurance can provide value-added services such as roadside assistance and vehicle safety inspection.

Currently, risk management ability and value-added service level are becoming the core competitive ability of property and casualty insurance enterprises, and will surely accelerate to become the "soft power" of property and casualty insurance industry's high-quality development under the guidance of the program, and synergize with the "hard power" of capital, finance, and investment to promote the health of the industry.

On the road to high-quality development, the property and casualty insurance industry is in urgent need of transformation and upgrading. With the insurance structure from the car insurance to car insurance, non-automobile insurance and the development of change, the development of kinetic energy from sales-driven to product-service-driven transformation, the function from the traditional economic compensation to risk management and value-added services upgraded, the power and vitality of the high-quality development of the property and casualty insurance industry will also emerge, the structure is reasonable, functionally complete, scientific governance, competition and orderly property and casualty insurance market is no longer far away.