The innovative digital distribution channels being adopted by healthcare insurers in China
Healthcare and insurance are rapidly evolving all over the world. Ageing populations are enjoying older age, with longer retirements. But longevity has its drawbacks, as more individuals will spend more of their twilight years managing chronic ailments. As technology is used to transform business model, so insurers are exploiting new opportunities to distribute their products.
The Chinese insurance market has adopted all of the distribution strategies identified in our in-depth article here.
Though successful insurers will exploit multiple channels, here we look at several Chinese players that have become identified with one particular route to market.
Virtual insurance adviser model
Xiaobang started life as an internet stock market but realised the need to provide meaningful and accurate financial planning was missing from the Chinese internet.
First, Xiaobang established a close partnership with an online parental app and WeChat account. Inside this app, Xiaobang created a user journey for young parents with financial planning questions. Second, Xiaobang drew users from the parental app into a WeChat group chat. Here, Xiaobang published more content related to pension, investment, and life insurance needs, on a ‘one to many’ basis.
The maximum number of participants in a WeChat Group is 500 and from here Xiaobang identified those who were ready to buy a life or health insurance policy. It’s important to note that unlike the legacy telemarketing activities – Xiaobang charges 100rmb for the consultation it provides.
Third, and more recently, Xiaobang has begun exploring direct marketing activities – striking partnerships with Xiaomi’s TV service and embedding its agents inside TikTok. Although many of Xiaobang’s efforts will be familiar to brokers and life insurers, its focus on quality and consistency of advice has set it apart in a crowded field.
Everyday risk coach
Dnurse has developed a recommendation engine called the IDSS (Intelligent Decision Supporting System). The IDSS uses the processing power of smartphones and Dnurse operated cloud servers to analyse blood glucose levels and insulin dosages in real time to deliver personalised recommendations to users, using a diabetes product called Sweet Life. Dnurse, as the key enabler, is providing its hardware and software to help policy holders improve their diabetes self-management and compliance, which lowers the loss ratio for diabetes-related claims in addition to preventing the onset of diabetes related complications.
Plug and play insurer
Wukongbao is bringing a new level of sophistication to cross selling by providing a data mining API to more than 5,000 third-party platforms including travel, health, auto and real estate apps.
Once embedded, the Wukongbao API parses the server logs of partners in order to identify patterns in user behaviour. These patterns are used as the basis for tailored insurance policies that can be built, and ultimately sold. The resulting win/win provides consumers with personalised insurance products while partner apps can maximise an important revenue stream.
P2P network operator
Waterdrop has taken a new approach to mutual insurance with a low price/low limit to identify risk pools that are seeking mutually beneficial cover. It then makes enrolment of the customer straightforward, by signing them up via WeChat. The ultimate goal is to achieve offline conversion through outbound telemarketing and the use of an existing agent network. Waterdrop has recently acquired an insurance company and is trying to build brand recognition as a new breed of Chinese insurance company.