KPMG China Insurance Service and Zhong An Fintech Institute presented a report on “InsurTech: Infrastructure for New Insurance”.
In recent years, China’s insurance market has grown rapidly. In 2017, total primary premiums in China hit RMB 3.1 trillion, making China the second largest insurance market in the world. Online insurance has achieved even faster growth than the industry in general. Over the last 5 years, total online insurance premiums in China have increased by nearly twentyfold, from RMB 11.07 billion in 2013 to RMB 183.53 billion in 2017. The development of online insurance has expanded the insurance industry as a whole. Moreover, as a result of China’s vast market and supported by numerous application scenarios, the technology that services online insurance has steadily matured and has become a key driver of growth in the industry. In these ways, insurtech in China has been developing rapidly and will soon rise to the forefront of the global insurance market.
As China’s economy transitions into the New Normal, new economic growth drivers, new and expanding demands, and new technologies will result in changes in the insurance industry. In this new technological era, insurtech, which originated from online insurance, is absorbing innovative technologies and promoting applications that reinforce the insurance industry ecosystem. In this way, insurtech has stimulated the construction of a more efficient, compatible, balanced and humanised new insurance system, and has become an important part of the infrastructure underlying this system. In this context, China is not only becoming a country with a strong insurance industry—hopefully it will soon become a world leader in insurtech.
Although several new technologies have already been put into practice in the insurance industry, it is still necessary to systematically examine how the various new technologies relate to the insurance industry, and specifically how they relate to new insurance. Important questions include the following:
With regard to the above questions, we surveyed professionals in both the insurance and technology industries regarding the development status and prospects of insurtech. Our research focused on major domestic life, non-life insurance, reinsurance companies, online insurance companies, insurance intermediaries, third-party Internet platforms, as well as consulting firms, academic research institutions, and other entities. Interviewees included senior executives and employees in various positions in the areas of products, underwriting and claims, actuarial science, risk control, sales, customer service, information technology, data management and more.
By explaining insurtech and its impact more comprehensively, we hope to help relevant industry participants have a clearer understanding of insurtech’s development. With such an understanding, participants can more effectively deploy innovative technologies to achieve self-reform, and jointly promote the healthy, steady and rapid development of the insurance industry.