How to build a trust mechanism in the insurance industry?
my countrys insurance business entities include traditional insurance companies, Internet insurance institutions and other intermediary platforms. As my countrys economic development enters a new era, vigorously promoting the high-quality development of the insurance industry is the fundamental requirement for implementing the spirit of the 19th National Congress of the Communist Party of China. Driven by Internet finance and insurance technology, my countrys Internet insurance has developed rapidly since 2012, and the scale of insurance has continued to expand.
However, in the face of the shackles of traditional marketing, some leading companies in the industry failed to change their operational thinking in a timely manner. Since the beginning of this year, nearly 30% of their market value has evaporated, and digital transformation is imminent.
As Ma Mingzhe, chairman of Ping An of China, said in a signed article My View on New Digitalization published by the Financial Times:
Digitization is a basic project to promote the progress of human society and increase productivity in the 21st century, and it is a revolutionary progress for human beings to leapfrogly improve their understanding and ability. For enterprises, digitalization will bring about a huge subversion in thinking mode and a systematic change in industrial practice in terms of strategy, organization, management, operation, talent, and service.
Limitations of traditional insurance business
In terms of the development of traditional insurance, demand is affected by many aspects such as risk, economic development, economic system, technological progress, wealth level, alternative products in the capital market, and insurance prices. At present, the insurance awareness of the people in our country has not been generally established. Under the marketing offensive of some insurance company business personnel for profit, people lack trust in insurance and have a certain degree of vigilance. As a result, insurance often becomes a passive consumption model. People seldom choose and purchase insurance products actively and spontaneously.
At the same time, under the current insurance rules, consumers are always in a weak position, unable to exert influence on insurance terms, rules, pricing power, and personal information security. Various links such as insurance product design, sales, and claims settlement have led to a lack of consensus on insurance products, and the phenomenon of difficult to settle claims in insurance that has been criticized by the public often occurs.
In addition, the intermediary feature of traditional insurance has affected the sustainable and sound development of the insurance industry. For some well-designed insurance products, since sales intermediary commissions account for most of the cost, it erodes the enthusiasm of insurance companies and institutions to provide insurance products, and also reduces the costs for policyholders, resulting in a vicious circle of development.
The blockchain breaks through the limitations of traditional insurance
The development of blockchain technology, with its characteristics of decentralization, data immutability, consensus trust, and transaction traceability, is expected to solve the pain points of traditional insurance while helping the vigorous development of Internet insurance, and help the high-quality development of the industry.
First, blockchain technology can effectively improve the information security level of the insurance industry.Blockchain can effectively guarantee its anti-tampering and anti-counterfeiting properties by distributing and storing data such as insurance subject matter and insurance amount in a chain structure. It is especially suitable for data preservation and storage of electronic insurance contracts in insurance scenarios. certificate service. At the same time, the asymmetric encryption algorithm of the blockchain can prevent and control the leakage of insurance customer information, and can ensure better implementation of consumers personal privacy rights.
Second, blockchain technology enhances the effectiveness of insurance supervision.Based on the characteristics of decentralization, data immutability, and collective supervision and maintenance based on blockchain technology, it can help the traditional insurance industry to establish an effective supervision and control mechanism, so that the flow of each insurance fund is open and transparent, and the flow of funds cannot be tampered with. The whereabouts and uses of funds can be traced to achieve sustainable operation and high-quality development. At the same time, using the blockchain as the underlying supporting technology, while improving the information disclosure level and transparency of insurance institutions, it also enables regulatory authorities to more effectively supervise the operation of the insurance industry at a lower cost and supervise the flow of insurance funds in a timely manner. And use channels to prevent insurance fraud in advance, further improving the pertinence and effectiveness of supervision.
The third is that blockchain technology improves the efficiency of insurance operations.The smart contract mechanism of the blockchain can realize the automatic execution of procedures without human intervention, improve the intelligence of insurance, develop more insurance products that trigger compensation, can support automatic claims, reduce intermediate links and a large number of manual operations, and save insurance institutions. Operating expenses, more energy to serve consumers, and a qualitative improvement in compensation efficiency.
Fourth, blockchain technology helps to establish a trust mechanism in the insurance industry.epilogue
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The wave of digitalization has arrived. Whoever can grasp the pulse of the era of digital society and seize the opportunities brought by digital development will be able to shape core competitiveness and accumulate development power sources
As the result of the fourth industrial revolution, blockchain technology is distributed, open, transparent, safe and stable, so it has broad application prospects in the insurance field, and promoting digital transformation in related fields is also the only choice to improve efficiency.
At present, blockchain technology has a large number of specific cases applied in the insurance industry. For example, in 2016, B3i, a blockchain research organization alliance jointly established by Allianz Insurance Group, Munich Re, Swiss Re, Holland Global Life and Zurich Insurance Group, launched a property catastrophe excess compensation reinsurance contract blockchain prototype in 2017. , Through the blockchain technology to achieve three-level data hierarchy, the efficiency of data transfer has been greatly improved. In China, a number of insurance companies, including PICC, Sunshine, and ZhongAn, have deployed the blockchain field, and have launched a variety of products that are popular in the market, effectively improving the efficiency and quality of the main insurance business.
Wanglian Technology has been deeply involved in the field of blockchain + for many years. At present, it has provided solutions for more than 100 customers in different industries in the fields of commercial factoring, financial leasing, bill management, supply chain logistics, etc., and successfully realized blockchain technology. Landed in multiple industries. In terms of boosting the transformation of traditional insurance, we will also spare no effort. Through the deep integration of blockchain technology and the insurance industry, and the consensus mechanism on the chain, both parties in the insurance relationship can reach a mutual trust consensus, fundamentally solve the dilemma of traditional insurance, and promote The healthy development of the insurance industry.
