Huize CEO weighs in on changes in Chinese insurance market

“Personally, I might very a lot welcome the entry of international insurers into the Chinese language market as these established business gamers would convey in additional superior enterprise philosophies, administration practices, in addition to higher danger administration capabilities, which might be extremely helpful for the business to be taught from,” the CEO, who co-founded Huize with 5 companions in 2006, informed Insurance coverage Enterprise.

Ma mentioned Huize maintains good communication and cooperation with many international (re)insurers, and that it’s this first-hand expertise of working with them that has allowed the insurance coverage product and repair supplier to enhance its personal enterprise administration and develop danger administration capabilities akin to Huize’s clever on-line underwriting system.

He asserted: “Some would possibly concern that the entry of international insurance coverage firms will additional intensify the fierce competitors available in the market. Nonetheless, I feel that the Chinese language insurance coverage market nonetheless has important development potential, implied by the comparatively low penetration and density as in comparison with extra mature markets.”

The CEO is a agency believer that competitors will encourage evolution – main not solely to improved providers but additionally elevated alternatives, in addition to pushing the perfect enterprises to face out.

“We strongly consider that the doorway of international insurance coverage firms into the home market will present us extra working alternatives with main gamers and due to this fact promote higher community results and the additional strengthening of Huize’s platform,” he mentioned.

Greater than only a distributor

With a market capitalisation of roughly US$390 million, Huize connects clients and insurance coverage firms whereas providing robust worth propositions to each ends of the ecosystem. From the patron perspective, Huize distributes high-quality insurance coverage services and products to people of all life levels; on the opposite facet of the equation, it helps to enhance the working efficiencies of its insurer companions.

By way of its platform, the data- and technology-driven enterprise has insured 56 million individuals in China via Huize’s 6.7 million insurance coverage purchasers as of September 30, 2020. Huize began out by merely displaying obtainable insurance coverage merchandise for buy by customers, earlier than incrementally incorporating value-added providers akin to claims help, product suggestions, and round the clock on-line assist.

Ma’s camp ultimately launched a B2B2C (business-to-business-to-consumer) distribution mannequin, with a concentrate on long-term life and medical insurance, facilitating what the CEO referred to as “bilateral connections” between Huize customers and insurer companions. Earlier this 12 months, the corporate accomplished its Nasdaq itemizing.

Highlighting the essential function performed by information and expertise, Ma declared: “We face the digitisation development throughout our complete enterprise and society. Sooner or later, there can be a digital reproduction of every thing within the digital world for every one in all us within the bodily area. These digital replications will permit us to grasp the world extra precisely.”

The Huize chief went on to state that insurance coverage itself is a service based mostly on information analytics.

“Conventional insurance coverage has a higher reliance on static historic information and statistical strategies,” he defined. “Sooner or later, insurance coverage can be digital, counting on dynamic information and clever algorithm expertise, in addition to the Web of Issues.

“Digital insurance coverage will develop the service boundaries of conventional insurance coverage, permitting for a extra correct quantification of danger and a discount of operational and repair prices.”

Shifting ahead, Ma cited the next as excessive on Huize’s agenda: totally embracing digitalisation, constantly strengthening expertise analysis and improvement, attracting expertise, boosting the agency’s core competencies, and optimising its company tradition and governance construction.

“The brand new platform,” he mentioned, “will break the boundaries of the present enterprise mannequin, integrating on-line and offline channels in addition to empowering the business’s upstream and downstream gamers with information and expertise.”

— to www.insurancebusinessmag.com

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