Times Business School Researcher Sun Yiming

In Water Drop CompanyUnder the aura of going public in the United States, the Internet insurance track is again favored by capital.

On May 10, the new Internet insurance intermediary platform”Yuanbao Insurance” announced that it had received nearly 1 billion yuan in Series C financing. This round of financing was led by Source Code Capital, Cathay Capital and old shareholders Shanhang Capital, Northern Light Venture Capital , Qiming Venture Capital, SIG followed up. This is Yuanbao Insurance’s fourth financing since November 2019.

It is reported that Yuanbao Insurance is managed by the former NetEase executive Fang Rui was founded and officially launched in 2020. The company is positioned as an online insurance intermediary on the Internet, and has a national insurance brokerage company license, after generating premiums through the platform , And receiving commissions from insurance companies is its main income method.

Fang Rui, founder and CEO of Yuanbao Insurance, said:“This round of financing will be mainly used for core technology research and development to accelerate the realization of Intelligent insurance services throughout the process and all links, and strive to continuously achieve the ultimate user experience.”

This article mainly answers The following questions:

1. Can Yuanbao Insurance blaze a trail in the fierce market competition?

2. Is health insurance a good strategic choice? Is technology really the winning weapon of Yuanbao Insurance?

3. Absolutely large customers Taikang Online and Yuan Is the cooperative relationship between insurance and insurance strong?


There are many track giants, fighting fiercely

According to relevant According to departmental statistics, the scale of Internet insurance has increased from 85.9 billion yuan in 2014 to 269.6 billion yuan in 2019, of which personal insurance The proportion increased from 41%to 69%.

In the context of technology-enabled insurance, traditional insurance companies, Internet giants, and start-ups have joined the Internet insurance track to compete It is also extremely intense. Due to the current lack of insurance awareness among Internet users, most people only prefer low-priced, short-term Medical insurance and accident insurance pay bills, leading to high channel costs for third-party intermediary platforms, generally in Loss status.

In fact, the leading players in the Internet insurance intermediary industry today are mostly Internet giants, such as Ant Insurance, Weibao Insurance, JD Insurance, these intermediary platforms relying on the parent company have natural traffic advantages, Stable consumption scene and strong capital background. These Internet platform companies use big data to accurately identify user needs. They are developing and iterating in cooperation with insurance companies. Insurance products are more efficient and accurate, and therefore occupy a larger share in the Internet insurance intermediary market.Market share.

Public data shows that Ant Group In the first half of 2020, the insurance premiums will reach 52 billion yuan, and the insurance business will earn 6.1 billion yuan in half a year, making it China’s largest Internet insurance sales platform.

Tencentnot only has two insurance intermediary licenses, but also invested in 3 insurance companies and invested in Waterdrop The company has a multi-license and multi-channel layout.

except Ali, outside Tencent, Meituan, Didi, Ctrip and other companies have relevant scenarios to carry out insurance business. For example, Meituan’s Juntime Bao and Didi’s travel insurance.

To promote brand Influence and market share, major companies are increasing their marketing efforts, which also results in the customer acquisition cost of Internet insurance companies and Marketing costs remain high, and players who have just entered the industry are generally at a loss.

In addition to Internet platform companies, traditional insurance companies are not far behind. According to data from the China Banking and Insurance Regulatory Commission, a total of 146 insurance companies are currently engaged in Internet insurance business, including 74 property insurance companies and 72 personal insurance companies.

Greater opportunities lead to more intense competition. New Crown Epidemic for offline The development of insurance agents has caused a greater impact, which has prompted traditional insurance companies to increase online investment, and the Internet insurance industry is in a fierce battle.

With many players and leading companies taking the lead, as a new generation of players, can Yuanbao Insurance It is still unknown to smash a bloody way to survive in the fierce competition.


The disadvantage of drainage is difficult to solve, and it is attacked by traditional insurance companies

Faced with fierce market competition, Fang Rui once said in an interview with the media,”Yuanbao The biggest advantage of insurance is that the team has strong Internet genes, strong Internet user thinking, and solid Internet technology strength.”

It is reported that Fang Rui was the vice president of NetEase Group and the head of the group’s technology department. He founded NetEase e-commerce and NetEase Pay, and served as CEO. He has 17 years of working experience in NetEase and is a firm believer in technology empowerment. .

In terms of products, Fang Rui chose to start with health insurance. This is because in the Internet insurance track, health insurance comes with its own traffic Attributes are the direction of least resistance for technology companies to cut into the track.

At the beginning of this year, the supervisory level was The development of commercial health insurance has set ambitious goals:strive to 2025, market The scale exceeds 2 trillion yuan. Based on this calculation, the compound growth rate of health insurance in the next 5 years will be about 20%. According to data released by the China Banking and Insurance Regulatory Commission, the health insurance business premium income will reach 705.9 billion yuan in 2020, a growth rate of 13.37%. Under the influence of the epidemic, health insurance, which still maintains a double-digit growth, is particularly eye-catching. This is also an important reason why Yuanbao Insurance chooses to start with health insurance.

However, competition in the rapidly growing health insurance market has become increasingly fierce, and insurance companies’ product homogeneity has become more and more serious. Millions of medical care, Huimin Insurance, etc. are all swarming into the Red Sea.

In mid-May, Ping An Health InsuranceChairman Zhu Yougang said publicly, “Almost all insurance companies are engaged in the health insurance business, and all leading Internet platforms can also sell them. The inclusive business of benefiting people’s insurance between medical insurance and traditional commercial insurance turned out.” He believes that the health insurance market is facing”canyon-style” competition.

In the health insurance market, is technology really a winning weapon? Can Yuanbao Insurance be proud of its technological advantages? This seems to be a false proposition.

On the one hand, Yuanbao Insurance started late. It is a latecomer on the Internet insurance track and lacks”First mover advantage.” Its customer base is small and lacks coverage. In the Wind control and user portraits have inherent deficiencies, and in fact they have not achieved a technological lead. Especially in the face of Internet giants such as Ant Group and Tencent, their technical strength and Internet thinking are even more difficult to match.

On the other hand, Internet insurance needs to reach more users in order to form a certain percentage of conversions. High traffic and low customer acquisition costs are the key to Internet insurance sales, and this is precisely Yuanbao Insurance The weakness. As a new platform, Yuanbao Insurance does not have national-level applications such as Alipay and WeChat like Ant and Tencent, and lacks sufficient traffic exposure and customer acquisition sources.

Moreover, Yuanbao Insurance’s products are mainly million-dollar medical insurance and accident insurance, which are very similar to the market competitors. Quality, lack of the ability to create explosive products; especially under the impact of the epidemic, traditional insurance companies have increased the construction of online self-operated channels, which has intensified the competitive pressure of Internet insurance online traffic to obtain customers. Data display, insurance company official websiteinsured customers has seen rapid growth in recent years. The number of customers has increased from 4.947 million in 2016 to 18.242 million in 2020.

In addition, even compared with traditional insurance companies, Yuanbao Insurance is quite insufficient in funding and R&D capabilities.

From the data of the China Banking and Insurance Regulatory Commission, in 2020, the direct investment of information technology by major insurance institutions was 35.62 billion yuan, compared with 2018’s The 26.8 billion yuan has increased significantly, and the proportion of insurance technology in insurance premium income has also increased year by year. This shows that traditional insurance companies are paying more attention to technology.

According to Ping An (601318.SH) as an example, in 2020, Ping An of China will use 1604 items of financial technology The number of patent applications ranked first in the world in the”Global Financial Technology Patent Rankings TOP100″. In the entire TOP10 list, Ping An’s companies have exclusive 5 seats. In addition, the scale of Ping An’s science and technology personnel has grown from just over 3,000 IT technicians 7 years ago to 110,000 technology employees and over 3,000 today.Scientists, covering 8 major research institutes, 57 laboratories, annual research and development costs of nearly 1 billion U.S. dollars, and developed a health management platform”Ping An Good Doctor”, established and realized online inquiry The health ecosystem of medical clinics, drug shopping malls, and insurance completes the closed loop of online medical care.

It is difficult to match the Internet platform giants, but also is attacked by traditional insurance companies. Fang Rui, who has a technical background, is behind him. How should Yuanbao Insurance achieve differentiated competition in the close-to-hand health insurance market?


The popularity of the product is low, and the major customers lose money for years

Nowadays, China’s insurance market is highly centralized. The winners of the four traditional insurance companies take all, and the net profit of small and medium insurance companies is worrying. loss ratio and expense ratio are both Gao is significant, it’s all about survival.

Times Business School research found thatAs an insurance intermediary, Yuanbao Insurance’s official website discloses only 10 partners, and most of them are small and medium-sized insurance companies, including Taikang Online, Hongkang Life, Haibao Life, Peking University Founder Life, etc.

and its main product types are million-dollar medical insurance, critical illness insurance, comprehensive accident insurance, etc. The products have RMB The well-known products of Yuanbao·Million Medical Insurance, Yuanbao·Huatai Comprehensive Accident Insurance, Yuanbao·Million Anti-cancer Insurance, etc., are extremely low and have serious homogeneity with competing products.

It should be noted that among many partners, Yuanbao Insurance is extremely dependent on Taikang Online. Among the 42 insurance products it disclosed, 28 are in cooperation with Taikang Online, accounting for 66.67%of the total. The remaining insurance companies have very few products, some or even only one, and many of them are accident insurance, account insurance, etc. Edge products.

Take Taikang Online, the largest partner, as an example. This company is an Internet insurance company established in 2015, but It has not yet made a profit and is deeply mired in losses. In 2020, Taikang Online will lose 625 million yuan, and the loss will expand (-484 million yuan in 2019) . In addition, Yuanbao Insurance is only one of Taikang Online’s many agent sales intermediaries. Weibao is Taikang Online’s largest partner. Taikang Online’s star products”Weibao” and”Yaoshenbao” are all launched in cooperation with Weibao. .

Once Taikang Online cancels the partnership due to its own business problems or other market factors, Yuanbao Insurance’s business may be hit hard. How to get rid of the dependence of major customers is also a difficult problem faced by Yuanbao Insurance.

04 strong>


Go to the United States at Waterdrop Company At the time of listing, Yuanbao Insurance received nearly 1 billion yuan in financing, which highlights that the Internet insurance track is still a major outlet in the current capital market, but the core of the company’s business is profitability. In the market competition where there are many giants and lack of first-mover advantage , If Yuanbao Insurance cannot establish a moat in product business development and traffic acquisition, and seek a certain profit Model, the prospects may be difficult to be optimistic, after all, companies that fail to start a business abound.


1 .”Former NetEase executive Fang Rui started his own business,”Yuanbao” received billions of yuan in financing for one year.” 36氪

2.”Three-Party Internet Insurance Sales Market:Handheld by Third-Party Network Platforms Traffic dominates the side, professional intermediaries lack ecology and still lose money”. China Insurance Network

In the post-traffic dividend era, how do you view Internet insurance burning money for growth? 》. Commercial Data Pie