China Insuretech

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
October 10, 2016
Industry Trends
Asia-Pacific

Abstract

Note: This report is also available through Oliver Wyman.

The global surge in Fintech has spread to the insurance industry, where Insuretech is leveraging cutting-edge technologies to improve existing insurance products, develop innovative new ones, and reshape the industry.

The technologies include big data, the Internet of things (IoT), block chain, and cloud computing. In mature markets such as the U.S., these tools have helped insurers lower costs and increase efficiency. They have also improved the customer experience and optimized product offerings. At the same time, new, disruptive Insuretech companies have emerged with a variety of business models to challenge insurance industry incumbents.

In China, an underdeveloped insurance market enjoying double-digit growth, the disruptions triggered by Insuretech are causing an insurance industry revolution. One reason for the impact is the fast adoption and heavy use of online ecosystems by the Chinese. In addition, Insuretech is underpinned by a regulatory environment supportive of innovation.

The result has been a surge in new Insuretech players creating disruptive products, services, and business models. Some of these are integrating insurance products into online ecosystems and fostering groundbreaking innovations.

Oliver Wyman and ZhongAn, China’s first online-only insurer, are jointly publishing this report to analyze the Chinese Insuretech market and answer the following questions:

1. How big are the opportunities?

2. How are business models evolving to seize the opportunities?

3. What are the key factors required for success?

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Preface

3

Executive Summary

6

China Insuretech Market Overview

8

Insuretech Business Models for China

16

Key Success Factors for Insuretech Business Models

24

Risks and Uncertainties

29

Appendix A: Examples of Technology Adoption and Ecosystems

31

Appendix B: Key Methodology and Assumptions of Our Forecast

33

Appendix C: Screenshots of Taobao’s Statistics on Shipping Return Insurance

35

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