Asthe Insurance Industry Evolves, BIG Takes the Lead with BlockchainTechnology
Thedevelopment of China’s insurance industry started relatively late.However, as the living standards of its citizens improved, theinsurance industry went through a similar overhaul. In 2020, theinsurance industry realized 4.53 trillion yuan in premium income, ayear-on-year increase of 6.1%. Among them, health insurance isgrowing at a rapid rate. In 2020, the premium income for healthinsurance will be 817.3 billion yuan, a year-on-year increase of morethan 15%. Even so, compared with the United States, Japan and othercountries, the development of China’s insurance industry is still inits infancy. In terms of insurance depth and density, China is farfrom the world average. China’s insurance industry still has a longway to go in the future, and there is plenty of room for growth.
Accordingto the “China Insurance White Paper – 2018 Edition”released by PricewaterhouseCoopers, the per capita premiums andpolicy growth rates of China’s insurance industry are at 18% and 47%respectively, and consumers who hold multiple policies account formore than 60% of policy holders. Among them, the number of seniorcustomers above the age of 80 accounted for a relatively highproportion, which may be due to the income growth of this group andtheir increased need for medical support. On the whole, citizens areincreasingly aware of the need for protection, and this may provideimpetus for the continuous development of insurance products. Withthe increasing market size of the insurance industry, traditionaloffline insurance sales methods seem to be particularly inefficient.If the insurance industry hopes to continue expanding, a path ofchange must be found.
TheInternet has developed rapidly in the past decade, and e-commerce hasgradually integrated into, and became a viable alternative to,physical businesses, and has even took over the market share oftraditional offline businesses. As young people born in the 90sgradually become the main consumer group in the insurance market,Internet users are slowly being prioritized, and online insurance hasbecome more and more comprehensive as insurance platforms ushers inexplosive growth.
Accordingto data from the China Banking and Insurance Regulatory Commission,domestic insurance such as auto insurance, agricultural insurance,accident insurance, and short-term health insurance purchased onlinewill reach over 80% by 2022. At the same time, qualified insuranceplatforms should explore the digitization of the entire insuranceprocess. It is estimated that by 2030, the potential market foronline insurance will exceed 600 billion yuan, ten times the marketsize in 2020. The main driving force behind this growth will betechnology.
Althoughonline insurance solves the problem of sales efficiency and savescosts, it is basically the same as the offline insurance model. Inthe face of a larger market in the future, it is imperative to relyon advanced technology that will improve the insurance industry.
BlockchainEmpowers a New Era of Insurance
Drivenby rapidly changing consumers demand, industry-wide competition, andregulatory and technological changes, China’s insurance industry hasushered in a new revolution since 2008, and the advent of Bitcoin’swhitepaper allowed the traditional financial industry to see newpossibilities. Digitization is another unprecedented opportunity forthe insurance industry after the invention of the Internet.
Blockchaintechnology has the unique characteristics of data authenticity,tamper resistance, and decentralization, making it fully applicablefor the insurance industry. Blockchain, AI, big data and othertechnologies make commercial and health insurance more efficient,thereby achieving sustainable development.
BIGInsurance is the world’s leading customizable, extendable insuranceecosystem based on blockchain, Internet of Things and artificialintelligence. The platform takes new technology as its core growthmodel, and seeks to transform traditional insurance processes –digitizing insurance products and modernizing insurance processes –to improve efficiency and productivity, and return value to users andparticipants of the BIG platform.
Onlya professional team can create a professional platform. The globalBIG team includes actuaries, risk managers, and professionals in thefields of insurance, investment, statistics, and big data. Meanwhile,the management team has investment banking experience in investmentbanks such as Bear Stearns and JP Morgan Chase, along with more than35 years of experience in actuarial science, big data calculation,risk management, and asset management in insurance companies such asAXA, AIG, Global Atlantic, Ageas, etc.
Comparedwith traditional insurance IT architecture, the BIG platform relieson the combination of blockchain, artificial intelligence, big data,and the Internet of Things, and has three absolute advantages in theinsurance industry that are irreplaceable.
1.The BIG insurance platform can write the process logic of insuranceunderwriting and claim settlement into a smart contract for automaticexecution, which avoids the inefficiency of manual review processesand makes it easier for customers to carry out claims process fortheir insurance policies.
2.“Purepremium = risk frequency × loss of claim settlement”,the BIG platform uses artificial intelligence and big data analysisto calculate premiums, reduce claim fraud, and reduce redundant costsin the claim process through the usage of smart contracts, which inturn reduces the premium rates.
3.The authentication system on the BIG platform can uniquely andaccurately record the identity of the applicant and store theinformation on the blockchain. Regardless of whether a user isinsured by multiple insurance companies, or has purchased multipletypes of insurance from the same company, the user’s informationwill only need to be certified once. Once done, it can then besubmitted multiple times without additional entries. There is no needto provide other proof of identity when making a claim.
Aswe look excitedly into the future, we should also look towardsimproving the present. With the acceleration of the digitalizationprocess, insurance will be more and more integrated into the lives ofusers, and will accompany the daily lives of users as they witnessthe beauty of life. BIG Insurance will also continue to expand itsindustry applications for commercial operations, and technology willdrive innovation in the future of insurance development.