The value and limitations of Internet health insurance

Insurtech has always been a hot spot in the market, but what can technology bring to insurance? Judging from current practice, the three main directions are the transformation of channels, the promotion of service capabilities, and the improvement of overall efficiency.
However, technology cannot bring about the improvement of cost control ability, the increase of health management level and the acquisition of high-value customers.

Therefore, from the perspective of the true value of insurtech, it is the main proposition of insurtech to use technological capabilities to drive the increase in the scale of insurance sales.
Relying solely on technology to provide services for insurance companies is difficult to quickly increase revenue.
There are only two types of companies that can eventually become bigger: insurance companies and insurance intermediaries.

Therefore, from the perspective of the true value of insurtech, it is the main proposition of insurtech to use technological capabilities to drive the increase in the scale of insurance sales.
Relying solely on technology to provide services for insurance companies is difficult to quickly increase revenue.
There are only two types of companies that can eventually become bigger: insurance companies and insurance intermediaries.

From a positive perspective, the innovation of insurance channels driven by technology is huge.
Through the Internet, users can decide to purchase insurance on their own without contact with sales staff.
However, from the perspective of the two major Internet countries in the United States and China, the markets are very different.
The United States does not have much right to speak in the intermediary market, and the development of insurance companies themselves has attracted more attention.
In the Chinese market, the development of online insurance is highly constrained by intermediary channels, and channels rather than insurance companies themselves have achieved major development.

From a positive perspective, the innovation of insurance channels driven by technology is huge.
Through the Internet, users can decide to purchase insurance on their own without contact with sales staff.
However, from the perspective of the two major Internet countries in the United States and China, the markets are very different.
The United States does not have much right to speak in the intermediary market, and the development of insurance companies themselves has attracted more attention.
In the Chinese market, the development of online insurance is highly constrained by intermediary channels, and channels rather than insurance companies themselves have achieved major development.

The huge difference between China and the United States comes from whether commercial health insurance is a necessity.
In the United States, commercial health insurance is a personal necessity.
The main points of competition for insurance products are its own brand, medical network, compensation ratio, deductible and price, rather than specific strong channels to acquire customers.
However, in China, under the wide coverage of national medical insurance, commercial health insurance is not a necessity.
High-quality hospitals are all public hospitals.
The homogeneity of products is serious, and the value of channels is much higher than the value of products.

The huge difference between China and the United States comes from whether commercial health insurance is a necessity.
In the United States, commercial health insurance is a personal necessity.
The main points of competition for insurance products are its own brand, medical network, compensation ratio, deductible and price, rather than specific strong channels to acquire customers.
However, in China, under the wide coverage of national medical insurance, commercial health insurance is not a necessity.
High-quality hospitals are all public hospitals.
The homogeneity of products is serious, and the value of channels is much higher than the value of products.

Second, technology has significantly improved insurance service capabilities, especially in claims settlement, customer service, and new medical services.
Through electronic payment and online communication, insurance companies can provide faster services.
The provision of online consultations, online appointments and online authorization also improves user experience.
However, there are still big differences between China and the United States.
Insurance services in the United States involve medical networks and service restrictions.
Online inquiries and customer communication are very important, but in China, compensation is paid after the fact, and technology only has a certain value in underwriting compensation.

Second, technology has significantly improved insurance service capabilities, especially in claims settlement, customer service, and new medical services.
Through electronic payment and online communication, insurance companies can provide faster services.
The provision of online consultations, online appointments and online authorization also improves user experience.
However, there are still big differences between China and the United States.
Insurance services in the United States involve medical networks and service restrictions.
Online inquiries and customer communication are very important, but in China, compensation is paid after the fact, and technology only has a certain value in underwriting compensation.

Third, technology can also play a certain role in improving efficiency.
For example, improving operational efficiency, saving labor costs, expanding sales, or being able to interact in a more timely manner in customer service, saving time for both users and customer service.

Third, technology can also play a certain role in improving efficiency.
For example, improving operational efficiency, saving labor costs, expanding sales, or being able to interact in a more timely manner in customer service, saving time for both users and customer service.

However, the improvement of service and efficiency is only auxiliary to the insurance market after all, and the transformation of channels is the focus.
But if you look at the disadvantages of insurance technology, the weaknesses are also very obvious.

However, the improvement of service and efficiency is only auxiliary to the insurance market after all, and the transformation of channels is the focus.
But if you look at the disadvantages of insurance technology, the weaknesses are also very obvious.

First, technology has little value in controlling fees.
Although companies like Oscar Health and Clover Health have developed information systems, on the one hand, they can import customers to companies with lower prices, on the other hand, they can provide online medical services and develop personalized solutions for customers.
However, although this is due to the fact that these companies have included a large number of users with chronic diseases in order to expand, all of these have been unable to significantly reduce the odds.
The core of insurance is scale.
It is difficult to improve the payout ratio if the proportion of patients with disease in the overall user is increased for the sake of scale expansion.
After all, technology is only an auxiliary method, and technology cannot fundamentally change an individual's health.

First, technology has little value in controlling fees.
Although companies like Oscar Health and Clover Health have developed information systems, on the one hand, they can import customers to companies with lower prices, on the other hand, they can provide online medical services and develop personalized solutions for customers.
However, although this is due to the fact that these companies have included a large number of users with chronic diseases in order to expand, all of these have been unable to significantly reduce the odds.
The core of insurance is scale.
It is difficult to improve the payout ratio if the proportion of patients with disease in the overall user is increased for the sake of scale expansion.
After all, technology is only an auxiliary method, and technology cannot fundamentally change an individual's health.

Second, it is difficult for online health management or technology-enabled health management to bring about significant cost reductions.
Although there are a number of online health management companies in the United States that are gradually growing, the main income of these health management companies comes from corporate health and welfare expenditures.
Although according to Livongo's analysis, they can help members to some extent, but it is not obvious in the final settlement rate.
, It only improves the short-term health indicators of individuals.

Second, it is difficult for online health management or technology-enabled health management to bring about significant cost reductions.
Although there are a number of online health management companies in the United States that are gradually growing, the main income of these health management companies comes from corporate health and welfare expenditures.
Although according to Livongo's analysis, they can help members to some extent, but it is not obvious in the final settlement rate.
, It only improves the short-term health indicators of individuals.

Third, the Internet’s ability to acquire high-value customers is not high.
Because high-value insurance is more complicated and requires closer explanations between sales and customers, it is difficult for users to directly make decisions online.
It's just that in the United States, health insurance is a necessity.
Some online agents can complete transactions through continuous communication with users, but most of them end up with continuous discussions offline and ultimately facilitate the transaction.
In China, users are more cautious in the face of high-payment products such as critical illness insurance, which makes it impossible to facilitate transactions online and must rely on offline communication.

Third, the Internet’s ability to acquire high-value customers is not high.
Because high-value insurance is more complicated and requires closer explanations between sales and customers, it is difficult for users to directly make decisions online.
It's just that in the United States, health insurance is a necessity.
Some online agents can complete transactions through continuous communication with users, but most of them end up with continuous discussions offline and ultimately facilitate the transaction.
In China, users are more cautious in the face of high-payment products such as critical illness insurance, which makes it impossible to facilitate transactions online and must rely on offline communication.

Essentially, medical insurance is a business model based on scale.
Technology is only an auxiliary method rather than a main force.
The core competitiveness of medical insurance depends on price and medical network.
Since China is all public hospitals, there is no way to compete on the medical network.
Insurance products are homogenized.
In the end, only channels and prices can be compared.
Channels have become the main force of insurance technology.

Essentially, medical insurance is a business model based on scale.
Technology is only an auxiliary method rather than a main force.
The core competitiveness of medical insurance depends on price and medical network.
Since China is all public hospitals, there is no way to compete on the medical network.
Insurance products are homogenized.
In the end, only channels and prices can be compared.
Channels have become the main force of insurance technology.

From the perspective of market development trends, if the focus of medical insurance competition is on medical networks and prices, although small companies can obtain customers at lower prices, they lack negotiation capabilities and cannot provide users with broadband networks.
Competition will be at a disadvantage for a long time, and it will be difficult to obtain big development opportunities.
If the focus of medical insurance competition is on channels and prices, small companies are highly dependent on online channels.
Although they can achieve a certain degree of development through channels, it is still difficult for small companies to compete in scale because high-value customers can only be obtained offline.
Big companies contend.
And as the monopolistic advantages of channels become stronger and stronger, the sales expenses of small companies are getting higher and higher, which will also squeeze their profits.

From the perspective of market development trends, if the focus of medical insurance competition is on medical networks and prices, although small companies can obtain customers at lower prices, they lack negotiation capabilities and cannot provide users with broadband networks.
Competition will be at a disadvantage for a long time, and it will be difficult to obtain big development opportunities.
If the focus of medical insurance competition is on channels and prices, small companies are highly dependent on online channels.
Although they can achieve a certain degree of development through channels, it is still difficult for small companies to compete in scale because high-value customers can only be obtained offline.
Big companies contend.
And as the monopolistic advantages of channels become stronger and stronger, the sales expenses of small companies are getting higher and higher, which will also squeeze their profits.

  In short, technology has brought a lot of momentum to insurance, but it is mainly focused on improving sales capabilities, which can include channels and service capabilities.

However, there is still a ceiling for the improvement of sales ability.
From the fact that Huize's income has completely changed from short-term insurance to long-term insurance, it can be seen that with the disappearance of Internet dividends, the development of Internet insurance will increasingly integrate with offline in the future.