Insurance: the market that has been forgotten
■ Binal News
Compared with the banking industry and the securities industry, the IT market in the insurance industry seems to be cold, main reasons are three: one, the insurance industry will start in China, and only a short more than ten years in shortness of development; The IT investment in the insurance industry is too small to relatively on banks and securities agencies. There is only about 1 billion yuan per year; in the end, the market concentration is high, and a few manufacturers have monopolized half of the IT market. There are only three ways to achieve large-scale current insurance companies, and there are three models of business processing models that realize the current insurance company: large concentration, land-level centralized and branch concentration. Among them, the land-level centralized treatment is mainly, 67% of insurance companies have taken this business processing mode. It should be pointed out that in this part of the insurance company, the land-level focus is a generally implemented business processing model, but centralized treatment in provincial (including municipalities) is the current development direction, and has been in a small number of provincial points The company is achieved. The ratio of insurance companies adopted by the branch office centralized handling business is 26%, mainly foreign insurance companies and smaller Chinese insurance companies. In a sense, branch concentration is also concentrated in the land market, but it refers to the independent processing of the branch, rather than centralized processing, including branching. The proportion of insurance companies currently treated with business in business is still small, only 7%. They are Taikang Life, Huatai Property Insurance Company and Hua'an Insurance Company. 16% of the CRM House Rate Customer Resource Management System (CRM) is low, the survey results show that only 16% of insurance companies have customer resource management. Among them, Ping An Insurance Company Beijing Branch used Turbo CRM, Chongqing, Dalian, Hangzhou Branch and Pacific Insurance Company Dalian Branch using Oracle's CRM. In addition, the Pacific Taiyuan Branch uses the Handa Alpine's customer resource management system. China People's Insurance Company Guangzhou Branch chose to develop CRM systems with Zhongke Soft. 57% of insurance companies plans to implement CRMs in the near future, including Chinese people's insurance companies, China Life Insurance, Taikang Life Insurance Company, etc. Another 26% of insurance companies have not implemented CRM programs in the near future. The insurance e-commerce is starting to find out the results show that 60% of insurance companies have opened their own websites, and 24% of insurance companies planned in the near future. Among these insurance companies that have opened the company's website, only 20.8% of insurance companies have realized online sales of certain insurance, 8.3% of insurance companies are under construction, 41.7% of companies plan, only 29.2% of insurance The company has recently not implemented online insurance.
Chart 1 Insurance company electronic commercial website construction status
Hidden hidden potential, although the insurance industry started late in China, the development characteristics of the past few years show that the IT market potential of China's insurance industry is huge. These features mainly include: 2-digit premium growth in 2001, the national insurance industry achieves a premium income of 210.94 billion yuan, an increase of 32.2% year-on-year, and it has made it difficult to believe in growth. Among them, property insurance premium income is 68.54 billion yuan, an increase of 14.5% year-on-year; personal insurance premium income is 14.24 billion yuan, a year-on-year increase of 42.5%, accounting for 67.5% of the total amount of premium income (62.5% last year); it is estimated that it will be about 3 years later 30% annual growth rate.
Chart 2 1999-2001 China Insurance Insurance Premium Revenue
Dividend insurance has strengthened the demand for data concentration than the business of payment due to dividend insurance (investment connection), if the premium is left in the county municipal network, and then concentrates to the head office, the cycle is longer, very disadvantageous Fast, efficient use, hinder the current most potential investment channel. Therefore, the development of new business requires the business management of life insurance companies to further focus, which is consistent with the development of banks. The concentration of data is a requirement, management requirements and operational requirements of management, and is the requirements for the development of the financial industry. For example, China Life Insurance Company, originally placed the business handling center in the latest county or municipal level in the outlet system. This is very disadvantageous to its development, especially the funds; with the development of business, centralized management, and unified management is getting stronger. In 2002, the data of more than 80% of the county-level outlets of China Life Insurance Company had been concentrated in the land, estimated to concentrate on data to higher levels within 2 to 3 years. Because only data is highly concentrated, management can quickly make decisions, reducing risks and improving profitability. In addition, the survey showed 77.8% of life insurance companies to invest in investment linkages as the core business of the company's future development. Industry insurance competition has expanded a coastal city that is more developed in the after-sales service system will be the focus of foreign insurance companies, so insurance companies in these areas will claim their claims. For example, many companies in Shanghai, Shanghai have adopted an easy-to-insurance online nuclear compensation and other systems to improve service quality. The most prominent example is the "insurance vehicle mutual touch fast processing service" of the Chinese People's Insurance Company. In order to establish a vehicle damage system, people have purchased a total of tens of millions of dollars of 1600 Papota OmniBook XE3 laptops. The system includes a fixed loss package for a laptop, a digital camera, and a supporting internal computer system. With this system, the staff can immediately rush to the scene after receiving the insured vehicle, and take the damage to the vehicle with the digital camera, quickly pass the image information into the laptop, and damaged by the vehicle. The partial file is stored, providing scientific and accurate basis for future fast loss claims. The professional management of the insurance industry has increased the demand for IT outsourcing. Even some insurance companies with higher information, strong technical teams, and began to outsource their own information construction projects, and more focused on themselves. Insurance business and daily maintenance work. Significant example is that Ping An Insurance Company and Taikang Life Insurance Company choose to outsource IDC to UniHub. Cooperation will benefit both parties, and insurance companies can concentrate their core applications and services because they enjoy specialized, high-level value-added services. Not only that, not only the outsourcing service, a large number of facilities and personnel costs are all stared, and the cost that will be greatly reduced from self-built. We believe that the trend of the application of the insurance industry in the future is an outsourcing service, but because the financial industry is more in China, the current manufacturer and system provider has a certain distance from this requirement. System integrators should learn from foreign successful experiences, and more profoundly understand the current demand characteristics and purchase capacity of China's insurance industry. 2002 IT Investment Overview According to the latest information on the world: 2002 National Insurance Industry IT investment is 1.03 billion yuan. In 2001, 47.1% of insurance companies have increased slightly in information construction, while significantly increased by 27.1%, basically 17.1%, slightly atrophy and significantly shrink, 5.7% and 2.9 respectively %. These investments are mainly distributed in small machines, PCs and small servers, which account for 23.6% and 23.9%, and other network products, storage devices, software and services.
Outlook 2003 focusing on the latest information on the world, the 2003 insurance industry will increase in IT investment in 2002, close to 1.2 billion yuan, the growth rate is 10.1%. We believe that the insurance industry will maintain 10% annually in the next 2 years. From the perspective of regional distribution, North China, South China, and East China are still the focus of investment, and the investment in the western region will continue to increase. From investment in products, the input of server and network devices will gradually increase to meet the requirements of data concentration; with it, the storage equipment will also increase. In 2003, the direction of investment in the insurance company is based on the investigation of insurance companies. We discover the current solutions of insurance companies are customer resource management and data concentration. 40.2% of insurance companies believe that CRM is most urgent or more developing prospects, the proportion is the highest; secondly, it is 31.2%; the proportion of insurance companies that are most urgent or more developed in the call center is 18.4%. And for online insurance, this ratio is only 10.2%. From Figure 5, we can also find that property insurance companies have much attention to customer resource management systems than the emphasis on customer resource management, which is determined by the characteristics of property insurance itself. Due to the short term of property insurance, the repetitive investment insurance of the insurance company has not exposed the service quality of the insurance company. From the perspective of insurance companies, the cost effect of new and old customers is particularly obvious because the amount of policy insurance policy is much higher than life insurance. Therefore, it is not difficult to understand up to 50.8%.
Figure 5 Comparison of Demand for Life Insurance and Herbage companies on IT systems
2003 focus on specific IT equipment investment, insurance companies have the highest choice rate of network equipment, with a 28.7%, and second, the selectivity is 36.8%, and the application software is ranked third, 31.6%. Other options are in turn to databases, middleware, and IT consultations from high to the end, 25%, 15.8%, and 5.3% respectively.
Chart 6 Key Investment Products 2003
Five Insurance Company In 2003, China People's Insurance Company and the Chinese Life Insurance Company are China's current largest insurance companies in their respective areas, and their share is over 60%. Not only that, their investment in IT also accounts for half of the entire insurance industry IT investment. So they have always been an object of IT manufacturers. In the past few years, due to poor benefit, IT investment growth slows down. However, since the beginning of 2002, China's people's insurance and China's life have begun to promote centralized construction of the province's company, in order to address the increasingly fierce competition of foreign insurance companies and joint-stock insurance companies with strong information technology. For now, all provinces companies are working hard to achieve centralized concentrations in the province, Jiangsu, Guangxi and Shaanxi annual investment is more than 10 million yuan, which strongly pulled the need for various IT products and system integration. In some coastal developed cities, such as Shenzhen, Guangzhou and other places, China Life and Chinese people are far away in information, the current focus is customer resource management and agent management system, which is customer, talent two-hand . For the Pacific Insurance Company, the information level of various provinces and cities across the country is different. Some is building a MIS system; some have achieved centralized treatment of branches, is focusing on the head office; and some are speaking a huge investigation of customer resource management systems, such as the Pacific Jinan Life Insurance Branch plans at 7 million budget CRM system. In addition, the Pacific Guangdong Branch is upgrading the host system, and it is estimated that it will invest 5 million yuan, and its software development projects will also be carried out in the near future. Although the Pacific branch is different, we believe that it will only increase in the next few years on the future in the next few years. Ping An Insurance Company has basically completed the major concentration project nationwide. The main job in the next few years is system maintenance and broadband expansion. The benefits of centralized enable the provincial and municipal companies to maintain small machine maintenance, concentrate on the development and maintenance of the business sector to local customer resources. Therefore, the future work of the various branches of Ping An Insurance Company should be the customer resource management system. Of course, due to the booming of Ping An company, the establishment of new branches will also bring new IT investment. The road taken by Taikang Life Insurance Company is completely different from the above four. Due to the late settlement, Taikang Life does not have a data burden on aged in China, so that there is an incomplete data burden as the Chinese Life, so centralized processing is quickly achieved. At present, the investment in Taikang is from the establishment of new branches. It should be noted that the Taikang branch is only more than 22 in the past year. Nearly 90% of the IT manufacturer's concern, the insurance company believes that IT investment has a significant investigation, 40.6% of insurance companies believe that IT investment has expanded its business, enhancing the company's competitiveness, and 48.6% of insurance companies believe that IT input The role is large; 8.1% of insurance companies believe that the main view is that IT investment has a large management of the company, but the company's business is not very large; only 2.7% of insurance companies believe that there is little effect. It can be seen that most of the insurance companies are satisfied with the rewards of IT investment; at the same time, it is considerable to increase or maintain the potential of existing IT investment. Service quality is the key to the competition of insurance companies. Many domestic insurance companies, especially state-owned companies, have expressed their competitive advantage through information technology to improve service quality through information technology. This choice is 85.4%; the cooperation system reform is placed in the second place, with a selection rate of 79.3%; the new insurance development is listed in the third, and the proportion is 60.9%; 19.6% of the insurance company will open up new agent channels (Such as banking, post office), etc. as a business strategy.
The lack of technical personnel is an important factor in hindering informationization. The survey shows that 34.6% of insurance companies believe that the unfavorable factors of the insurance industry informationization are the lack of technical personnel, and believe that unfavorable factors are the lack of funds and the uncomfortable internal management mechanisms. 19.2 %; It is considered to be 16.7% of management, and 9% of insurance companies believe that informationization is unclear. The informationization focus of the property insurance and life insurance company has a huge difference survey show that property insurance companies are far higher than those of the personal insurance company, and 40% of the former premium income is achieved. For life insurance companies, this ratio is only 18.9%. As for the agent to sell this channel, the situation is just the opposite. Life Insurance has nearly 70% of premium income, which is sold through personal agents, far more than 19% of property insurance companies. Since property insurance companies have a large dependence on channel agents, there has been an amount of IT investment in external networking and bank interfaces for a long time. Life Insurance companies are income by agents because nearly 70% of income are generated by agents, so life insurance companies always want to improve their efficiency of agents, such as developing agent management systems and exhibition systems.
