redefining insurance products and proposition …...insurtech markets. zhongan online november 6,...

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ZA International – All Rights Reserved 2019

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Classification in Master Slide

Redefining Insurance Products and Proposition with Technology

Be d i f f e r en t , t oge ther .

J u l y 2 0 1 9

Anthony Choy Produc t Direc tor

Agenda 1. ZhongAn Case Study

2. Scenario-Based Sales

3. Real-Life Example

2


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ZhongAn Case Study

1. How does ZhongAn redefine insurance value chain with Technology?

2. What does it mean to customers?

3. What does it mean to Society?

3


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4

The First Online InsurTech Company in China

H-Share IPO September 28, 2017 ZhongAn Online was listed on the Main Board of the Hong Kong Stock Exchange (stock code: 6060).

ZA International December 8, 2017

Established ZhongAn Technologies International Group Limited in Hong Kong to explore international business development, cooperation and investment opportunities in Hong Kong and overseas FinTech and InsurTech markets.

ZhongAn Online November 6, 2013

ZhongAn Online P & C Insurance Co., Ltd. was established

ZhongAn Technology November 2, 2016

ZhongAn Information and Technology Services Co., Ltd., a wholly-owned subsidiary, started business.


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Key Business Metrics

400+ mil Customers in 2018

#12 In PRC property and casualty insurance market

RMB 852 mil

Research & development expenses

> RMB 11 bil Gross written premium in 2018,

increased 89% compared to 2017

31% Market share in online non-auto insurance market


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Roadmap – Dual Engine Strategy

Open

Platform

Insurance

Evolution

Technology

Evolution

Technology

Export

Cloud

Life Travel Consumer

Finance

Health Auto Lifestyle

Consumption

3.0

2.0

1.0 • Develop long-tail and

offline markets and

expand distribution

channels • Expand product portfolio and

develop products across

networks

• Add value to credit

solutions and develop

technology exports

• Offer more

innovative health

solutions

• Explore more

scenarios and

develop more

ecosystems

Redefining insurance in

the connected world

through diverse

insurance offerings and

technology advancement

2013

Future

Present


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Insurance Getting Smarter in Ecosystems

\\\\\\\\\\\\\\

F L I G H T U

NSATISFIED

SCREEN BREAKAGE

SHORT TERM

HEALTH

D E L A Y

VEHICLE DAMAGE

EMPLOYEE

QUALITY

DENTAL

PROPERTY DAMAGE

MAJOR

A C C I D E N T S

T R A V E L

MERCHANT

U N A F F O R D A B L E

DEPOS I T

P U R CHASE

DEFAULT

LOAN

DISEASE

PURCHASE

HEALTH

HEALTH

LOAN

Our products extend beyond traditional insurance to address consumer needs

Ecosystem

Ecosystem Produc

t Product

Ecosystem Partner

Ecosystem Partner

5 major ecosystems

330 ecosystem

partners

Note: As of December 31, 2018

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiZtKfzrJrWAhXMSyYKHX3hDIEQjRwIBw&url=http://www.kanzhun.com/gsx1878748.html&psig=AFQjCNHgiVQJ9iG20KU3GUU2CJNToUvEKQ&ust=1505123633642261


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Connecting Technology and Insurance

Improve efficiency of the insurance value chain

Tap into under-served markets with innovative products and solutions

Empower industries and companies

Promote internal and external innovation and entrepreneurship

Wha t h a s Z h o n gAn a c h i e v e d ?

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Technology 1.0 – Cloud System

Quotation Underwriting Risk

Management Servicing

• Robot advisor

• Tailored coverage

• Low cost

• Flexibility

• Real-time

dynamic

underwriting

• High volume,

high frequency

• Identification

verification

• Anti-fraud system

• Real-time risk

control system

• AI customer

services

• Automated claim

process

Elasti

c

Open

Platfor

m

Flexible Cost-

effectiv

e

Secure Cloud-based Platform Pillars

“The first financial institution to build core system fully on cloud”


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Technology 1.0 - Key Metrics of Cloud-based Infrastructure

1 During the week of the Double 11 Shopping Festival in 2016

<5 seconds response

time to cyber attacks

New product launch

within

5~10 days

>200 million1 policies

sold in one week

>13,000 policies

processed per second

at peak times1

<10 seconds response

time on receipt of

notification on

anomalies

>330 ecosystem

partners connected


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Technology 1.0 – Power of Data Analytics

Data Analytics Models Data Intelligence

Segment analysis

Correlation model

Iterative learning model

Forecast model

Behavioral model

Profitability analysis Payment

Credit

Insurance

Behavioral

Social media

Government and public records

Product Innovation

Product Evolution

Targeted Marketing

Optimized Experience

Dynamic Pricing

Fraud Detection

Real-time Monitoring

Fraud detection model

Understand more about our customers and their needs through strong data analytic

capabilities

Data Collection


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Technology 2.0 – Open Platform

Connections can be achieved within 1

or 2 days via standard API at

minimal cost.

In 2014，we built open platform for fast connection with external partners

Long-tail

Ecosystem

s

Sharing

Mechanis

m

Scalable

API modules


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Technology 3.0 – Technological Enabler

“Combining the execution capabilities of the largest InsurTech in the world with the power of ecosystems and network effects from the most visionary and largest

venture capital fund in the world”

• Entered into Joint Venture agreement with SoftBank to set up a global FinTech company based in Hong Kong

• Combine ZhongAn’s leading-edge technology with SoftBank’s extensive ecosystem

• Focus on introducing advanced FinTech capabilities and solutions to the world

In 2016, ZA Information and Technology Services Co. Ltd was launched to focus on the technology export business


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Technology 3.0 – Strategic Partnerships in Singapore and Japan

To assist Sompo in approaching digital

transformation with our next generation cloud-

based insurance system.

Sompo Japan

The joint-venture between ZhongAn and Grab will

create a digital insurance marketplace that

offers innovative insurance products in a range

of categories.

Grab

Partnered with NTUC Income to develop digital

innovations and products for modern lifestyles

in Singapore.

NTUC Income

Japan

Singapor

e

Hong Kong

“As of today, ZhongAn Technology signed agreements with more than 300 customers”

Hong Kong as a gateway

to the international

market

Expand global footprint and

influence across other regions

Asia as primary ground to

establish overseas

presence


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Scenario-Based Sales

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What Makes a Successful Scenario-based Sale?

• “Moment of Truth”

• Mindset and timing of the

offerings

• Demo / psychographics of

customers

Right Time

• Personalized products /

services

• Targeted content

Right Offering

• Trust of offering in the

given channel

• Trust in the brand

• Trust in 3rd party services

Trust

Scenario-based Sales


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Understanding Scenarios

Define insurance need?

No

Low chance

Yes Aware of the need?

No

Educate or offer free acquisition

products

Yes

Does industry accepts

this risk?

No

Innovate and offer a new product

Yes

Targeted by

competitor?

No

Figure out innovative tactics to touch

customer

Yes Purchased?

No

Intervention-based

conversion

Sweet Spot for Partnership

Is there a market for

us?

Scenarios Example

“Looking to buy insurance”

“Researching insurance”

“Aware of a risk”, “Emotional event”,

“Learning about a risk” (discovery, moment of concern)

“Don’t know about insurance”

“Not thinking about insurance”

(Non-contextual lists allowed for direct marketing)

1 2 3 Customer Mindset (Classic Funnel)

Google “Zero Moment of Truth”

Ease of conversion

Clueless Customer - Low Conversion

Informed Customer - Medium Conversion

Buying Customer - High Conversion (hard to find)

All acquisition tactics should begin with customers’ mindset and scenario. We can then prioritize and find appropriate tactic to touch and sell to customers.

Wellness Events: a.Enjoys wellness b.Plays sports c.Engages in ZhongAn brand for freebies

Life Events: a.Recently married b.Expecting a baby c.Family member who has diabetes

d.Family member passed away

Use Voluntary Health Insurance Scheme (“VHIS”) as an example: a.Seeks to understand VHIS b.Visits comparison webpage c.Feels VHIS is not enough Offer Top up

Acquisition Tactics


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Real-Life Example

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Example: Walk-to-Wellness

Leading health management/insurance product in China

Large number of authorized customers

Deep market penetration

Set your steps goal to get protection 2 Earn your

benefits and services 3 Introduction – Details

of the product 1 22Mil Users

Insurance products tailor-made for

sports enthusiasts.

Using big data of various kinds of

sports indicators to provide

personalized coverage for people

with exercise level.

“More steps you take, the higher

coverage you earn.” Walk-to

wellness is a product which can be

afforded by exercise.

“BuBuBao” – Walk-to-wellness


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Walk-to-Wellness Demographics

>80% users born after

80s

22Mil

users

Keen on sports

and health

High growth in 3rd

and 4th tier cities

Interest in sports related

marketing campaign

Interest in sports

related insurance

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE] [CATE

GORY NAME] [PE…

[CATEGORY NAME] [PE…

60s 70s 80s 90s

Distinguished from traditional insurance,

80s and 90s are major user groups.

“BuBuBao” – Walk-to-wellness


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Extending Walk-to-Wellness to Our Partners

With Sports & Health Partner An open platform to gather exercise data and provide services, aiming to help users develop heathier habits.

By mining and analyzing data from this platform, target customers can be spotted.

2million users

Conversion rate up to

41%

Users’ average daily steps increase

40%

Benefits Reward / Campaign

User Center Join events and competitions

Earn points / vouchers / coupons

Content marketing through health advice

Purchase health management devices

Apply for value-added services

User-friendly customer portal

Fitness information


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Upselling More Complete Coverages

Additional coverage for fast growing middle-class Chinese customers

average age

35Years Old

Urban Residents Attracting new

generations of customers born in

80s to 90s Over

3Mil Policyholders

63%

health insurance policy

FIRST

Comprehensive medical / health services

Most popular online health insurance product in China

Walk-to-wellness Special premium discount will be offered to Walk-to-wellness

users

Tumor specific medicine service

Green pass

Prepayment service

Post-operation home nursing

Legal assistance

Shared deductible (Family

version)


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Expanding Access with Value-Added Health Services

family coverage / insurance

Offer personalized health insurance

Healthy people (standard)

“Personal clinic policy”

Accidental medical reimbursement insurance

Elderly people

“Personal clinic policy” (elderly version)

Senior comprehensive accident insurance

People with chronic diseases

Hospitalization medical insurance (exclusive version for diabetics and hypertension patients).

Smarter underwriting for “Personal clinic policy”

Offer personalized health services

• Rapid rescue • Fall detection for elderly people • Unusual heart rate detection and

rescue • Home nursing care • Early diabetes detection

• DNA testing • Body check • Blood glucose /

pressure monitor

• Doctor appointment • Critical illness fast pass

• Menstrual cycle tracking • Vaccine appointment • Women health and beauty information • Diet, nutrition and spending management

• Dental care Exclusive partnership with


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Concluding Thoughts

1.How does ZhongAn redefine insurance products and proposition with

Technology?

2.What does it mean to customers?

3.What does it mean to Society?

Supported by a cloud-based microservices system

Grounded on strong data analytics

Embedded in ecosystem with partners and scenario-based

sales opportunities

Better user experience from application to policy

servicing

Tailor-made products and targeted marketing

Lower cost

Higher insurance penetration

Ease the social and financial burden

Export technology to other traditional player and

foster innovation


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Thanks

Anthony Choy, Product Director

Email: [email protected]

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