"Zhong An is different because of you."
When you visit the Chinese network for the insurance company's website, the first thing that strikes you is the company's tagline. It easily translates into English. In one sense, it highlights all that Zhong An stands for: Personal, digital, instant insurance offers that put the customer at the center of their business.
What is Zhong An Online Insurance Company for P&C?
The Shanghai-based company was founded in 2013 by China's most prominent businessmen: Jack Ma (Alibaba), Pony Ma (Tencent) and Mingzhe Ma (Ping An). The idea was enormous in its simplicity – creating China's first insurance company to sell its products over the internet. In 201
Today, the company has more than 400 million customers with over 10 billion sold. It is part of five major ecosystems – with over 307 ecosystem partners. There is also talk of a foreign expansion in Tokyo.
Impressive company takes the attention of millennials:
- The average age of Zhong An employees is 29.5.
- Customers aged 18-39 account for 57.8 percent of their policyholders.
What is the secret of Zhong Ans's success and criticism what can insurers learn from insurtech giant?
For me, there are three standout lessons for traditional insurance companies:
- Digital strengthens everything and creates solutions to the customers' problems.
- Your strength lies in your ecosystem and the partnerships you create.
- 19659015] Customer centricity
Pedro Matthynssens, CEO of Vanbreda Risk & Benefits, writes in an article in De Tijd that insurance companies must manage for Zhong An. There is a reason why young people in China buy their first insurance policy directly online. The company makes purchase insurance easy and convenient and constantly innovates to put its needs first.
Matthynssens says that there is a big difference in how traditional insurance companies and insurance companies approach the concept of customer centricity. Traditional insurers, he writes, focus on offering additional services to better serve customers. Insurtech goes beyond that – they look at how society develops to identify the customers' needs and develop products and services to meet the changing needs.
In 2016, Zhong An collaborated with Ethereum to establish Zhong An Technology – an incubator to investigate artificial intelligence, blockchain and cloud computing.
"With the creation of Zhong An Technology, we are developing a new fine technology system that integrates technical research with economic innovation. We strive to be an accelerator for both finance and healthcare sectors." – Zhong An CTO Xing Jiang
Matthynssens writes that 97 percent of Zhong Ans's customers communicate via chatbots that only make communication fast, instant and accessible. Its powerful digital capability enables the company to settle damages immediately. If a flight has been delayed, it will resolve your claim while still waiting for the flight.
Zhong An also includes blockchain to enable smart contracts, reduce security risks and facilitate the growth of the insurance industry.
"Not only will we develop technology, but our goal is to make the technology a commercial driving force to put it at the center of our business ecosystem." – Zhong An CEO Jin Chen.
Ecosystem Power Games
In an interview with the founders of the Digital Insurance Agenda, the COO of Zhong An Technologies International Group announces Bill Song's success for its "ecosystem thinking".
Zhong An uses behavioral data from more than 300 partnerships to identify moments where the customer can use an insurance product. These digital ecosystems create channels through which the carrier can sell their insurance products.
"Insurance is a computer game. IoT, everything in telematics and even laptops generates huge piles of data. The question is whether you use this data to really create customized solutions for your new customers. The second time your customer buys the same policy. maybe you could consider different pricing scenarios. To understand and use your customer's latest data for recent purchases; That would be the preferred direction. "- Bill Song
Just over a year ago, I wrote a blog series on how ecosystem power plays insurance and presented Ping An as a study by an insurer that paves the way to the future.
Today, Zhong An sees early investor Ping An as a rival whom it can learn from. In an article in South China Morning Post Laura He writes that China's insurance market is expected to hit 1.4 trillion yuan ($ 211.7 billion) by 2021 with five technologies designed to transform the industry blockchain, artificial intelligence
He writes that China's insurance market consists of three segments:
- Traditional products on the Internet
- Upgrading existing products through new technologies
- Creating innovative products with great data analysis to tap unmet needs
Sheng says that Ping Ans's insurtech business focuses on first and second segments, while Zhong An operates in third.
Platform Economy 5 Cs
Zhong One addresses all the basic pillars of a platform business convenience, community, collaboration, cure and connection. I predict that in the future the carrier will redefine what we currently know about platform economies and ecosystems.
To learn more about ecosystems and how they transform the insurance industry, check out the following resources: