Ping An launched Smart Insurance Cloud in September
Decrypted: I wrote about Ping An’s annual Investor Day and its Fintech strategy in my last post. It turns out DailyFintech readers are very interested in Ping An’s Fintech strategy. So this week I wish to share more for you and we can start from the latest Fintech demonstration of Ping An – the Smart Insurance Cloud they launched in September
The Smart Insurance Cloud includes two AI-based solutions called Smart Authentication and Smart Claim. These solutions have been used within Ping An Group and now they are opening up, offering the solutions to all the partners in insurance industry. Ping An is trying to provide insurers with smart services and unique experiences featuring agile connection, quick upgrade, total autonomy and whole-process response. The ultimate goal would be a full-scale technological level-up for insurance industry.
Now let’s take a look how will Smart Authentication and Smart Claim change insurance.
Smart Authentication: By using biometrics such as facial and voice recognition, Smart Authentication solution will build a biological file of every customer and record a person’s biology, behavior and history information all in one file. With this tech, insurers can establish a real-time authentication among person, file and policy bill. Insurance will no long be inconvenient. It will be quick, easy and safe.
Smart Authentication can cover the following processes
- Sales: Reduce the amount of disputes in sales by verifying the quality of agents and the behavior of clients.
- After-sale: According to Ping An’s data, after they have installed Smart Authentication, the withdraw rate of new policies reduced to 1.4%, much lower than the industry average of 4%.
- Underwriting and Claim: The time needed in underwriting process is reduced. And Smart Authentication also have improved claim efficiency by reducing claim process from 3 days to 30 minutes.
- Customer service: Customer service agents can know a customer’s information before they talk.
Smart Claim: Smart Claim is the first smart solution for loss assessment and fraud detection right now in Chinese auto insurance market. It has 4 features:
- Accurate photo recognition: Used in car accident identification, it can identity all types of cars and their outer parts. And will score a car’s damage with 23 levels. The accuracy can reach 90%.
- Quick loss assessment: The machine learning system has been trained with a large amount of photos of actual accidents. So Smart Claim can now quickly assess the potential loss by analyzing a photo of the car in the accident.
- Precise pricing: Smart Claim can gather data and price of car components through its domestic network. So it can offer a precise repair price for customers and adjusters.
- Fraud detecting: Ping An has developed more than 30 thousand risk control rules for the claim process. It can effectively detect any frauds during a claim or after a claim. The claim cost can be contained with fraud detection.
An example of Smart Claim
With the help of Smart Claim, Ping An has processed more than 4.99 million auto claims in the first half of 2017. Net Promoter Score of Ping An’s auto insurance policy reached 82%. This solution has protected Ping An from a risk exposure as high as 3 billion RMB (454 million USD). After Ping An launched it to the whole market, it was expected to save more than 20 billion RMB (3.03 billion USD) risk exposures for the whole auto insurance sector.
Our take: The Smart Insurance Cloud, as a complete solution for the insurance industry, is a perfect reflection of Ping An’s Fintech strategy. In spite of that Ping An started as an insurance company in the first place, now they have pivoted and call themselves “a technology company with full financial services licenses”. It means Ping An is no long in defense mode against the invasion of tech companies like Alibaba and Tencent, it is going on the offensive and will fight for market share.
The Smart Insurance Cloud is launched by Ping An’s Fintech arm OneConnect. OneConnect was previously called Ping An Fintech Consulting. In the end of 2015, Ping An Group integrated the Fintech, Banktech and Credit subsidiaries all together and created OneConnect. It has grown quickly and now becomes China’s largest financial technology intelligence service open platform. OneConnect now provides services for individuals, small and medium banks and financial institutions. It is the key of Ping An’s Financial Services Ecosystem.
Speaking of Ecosystems, I think I should share with you the four ecosystems Ping An created. They will be the pillars of Ping An’s future businesses. They are Financial Services Ecosystem, Health Care Services Ecosystem, Auto Services Ecosystem and Real Estate Finance Ecosystem. And insurance is highly involved in the first three ecosystems.
As I mentioned above, Financial Services Ecosystem provides tech platforms for banks and institutions. Health Care Services Ecosystem will connect patients with medical service providers. And it is all built on an information platform called Ping An Health Cloud.
While in Auto Services Ecosystem, Ping An is trying to cover from the purchase of a car, all the way to maintenance and to the sell of a used car. Not only individual clients can enjoy better services, the dealers and repair shops can also get enabled with better technologies.
The same is happening in Real Estate Finance Ecosystem. Every steps of the business can be enabled by Ping An’s technologies.
You can read the English presentation of Ping An’s Fintech transformation here if you want to know more. This is made by Ping An and displayed on its official website.
Three emerging Chinese InsurTech companies
Decrypted: In this part, I will briefly introduce three emerging InsurTech startups in China.
Chinese Insurance Epoch (Beijing) Technology Co., Ltd is a big data solution provider for commercial insurance companies. Its services contain risk management and fraud detection in underwriting and claim processes.
Their core product is a cloud platform called Insurance Shield Cloud. It can help commercial insurers to verify the validity of customers’ identities and score every customer based on public information. Insurers can decide whether or not to underwrite a customer basing on the scores. They can also process verifications on claims.
Epoch Technology is quite like the French startup Shift Technology, they both provide anti-fraud solutions. However, anti-fraud is relatively new in Chinese markets, which means a low market recognition as well as a big potential.
Chief Riding Officer
This is a specialized insurance startup with a focus on the theft protection of electric bikes (e-bikes). They will install a GPS device on policyholder’s e-bike, and when the bike is stolen, they will find the bike based on GPS positioning. If they can’t get the bike back, they will refund with money or a new e-bike.
When they provide service for dealers and manufacturers, they will provide a comprehensive solution which combined insurance, hardware and software. Right now, they have established cooperation with more than 1500 e-bike dealers in Shanghai.
It seems to be a great market since China is one of the biggest e-bike markets around the world. However, most of e-bike riders are those with low incomes and low educations, so it is unlikely they will pay for extra premiums just to get a coverage for theft. They might be more willing to buy a few extra locks to keep their bikes safe. So despite of the big market of e-bikes, the supporting insurance services might not be well-received.
Dong Xiaoer is a group insurance platform jointly built by Xiaopao Tech and Huize. They provide group insurance for team building activities. Right now they are providing six policies online and all of their prices are very attractive, most of which start at 6 RMB (less than one dollar)
Group insurance is not a new thing in China, but Dong Xiaoer made a focus on group building activities which is quite unique. Huize is a huge insurance online market in China, with its help, maybe Dong Xiaoer can get its first batch of customers. And if they gained good credits from the first customers, they might have the chance to seize this one part of the group insurance market.
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