China Online Insurance Market to Grow at a CAGR of 12.6% during Forecast Period
Published | 02 August 2022
China Online Insurance Market is thriving as a result of changing customer demands and the need for appealing, uncomplicated products that give an Omni channel experience, as well as evolving customer wants and the need for technologically integrated solutions.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the China Online Insurance Market is predicted to grow at a CAGR of 12.6%, by the end of 2028. The personalization of insurance products made possible by the digital insurance platform enables insurers to more precisely underwrite and price individual customer insurance policies. The rise of the digital insurance platform industry is also being fueled by the ability to give clients customized experiences through a variety of channels. Furthermore, China Online Insurance Market is one of the most emerging markets that grow continuously owing to the fast integration of new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and others. However, digital transformation takes time, and issues with privacy and security are a big reason why the business can't flourish.
Rising Customers' Loyalty due to Digital Insurance Platforms
Digital insurance solutions provide deeper, more meaningful connections with customers across channels, provide personalized experiences, and, most crucially, accelerate online claim processing. Acquiring a new customer in the insurance market is frequently five times more expensive than converting an existing one. Furthermore, clients who are satisfied with the insurance options are 80% more likely to renew their coverage than those who are not. Applying for and renewing a policy online can be straightforward, quick, and available around the clock for insurance buyers. As a result, the ability of these platforms to develop customer loyalty is further supporting the growth of the digital insurance platform business.
Ongoing Digital Transformation
Due to expanding digitization, increased adoption of Internet of Things technology, and insurance companies shifting from product-based to customer-centric business models, the industry is predicted to experience significant growth. To provide a better customer experience while streamlining corporate operations, insurance companies that serve various industrial verticals are investing more and more in digital solutions. Digital insurance alternatives assist businesses in using business analytics to both boost consumer interaction and make informed judgments. The use of digital insurance platforms is predicted to increase as a result of the insurance industry's ongoing digital transformation. Through a single centralized structure, these platforms assist insurance companies in communicating to address various difficulties. The platform enables the insurance industry to transition from analog to digital operations, making the insurance ecosystem more customer-focused. This results in offering lucrative opportunities for the China Online Insurance Market during the forecast period (2022-2028).
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Challenge: Privacy and Security Concerns
Data and payment security are critical factors when digitizing insurance. As digital interventions become more ubiquitous, identity theft and hacking may become increasingly common. When an insurance company implements digital insurance platforms, it must ensure that background checks are complete, claims are genuine, and its online infrastructure is well-protected against uninvited attacks. While the digital insurance platform market offers benefits to consumers, it also raises potential risks. Consumers, for example, must have confidence that the information provided by digital platforms is beneficial to them. Search results, rankings, and other information generated by these systems may not necessarily reflect specific user preferences due to simplicity and biased information. Furthermore, concerns about privacy invasion, fairness, and prejudice are raised by the massive amounts of personal data those online platforms use. This is the main problem preventing market expansion as a result.
Segmental Coverage
China Online Insurance Market - By Type
The China Online Insurance Market is divided into categories based on type, including Life Insurance, Non-Life Insurance, Health Insurance, Accident Insurance, Air Travel Insurance, Dental Insurance, and Others. The China Online Insurance Market's portion of these is dominated by health insurance. This is due to the rapid growth of China's healthcare sector. Furthermore, medical treatment in China is continually improving, particularly since the Chinese government began admitting foreign investors to private institutions in 2012. Additionally, purchasing health insurance online is more transparent, flexible, convenient, requires less paperwork, and is quicker. During the anticipated term, all of these drivers will contribute to the expansion of the China online insurance market (2022-2028).
Impact of COVID-19 on China Online Insurance Market
The proliferation of COVID-19 favors the digital insurance platform business. Because offering insurance in person was not possible during the lockdown, numerous insurance companies and policyholders began to use these websites. Furthermore, throughout the epidemic, the insurance industry made enormous and unprecedented advances. As a result, demand for digital insurance platforms increased during the COVID-19 outbreak, positively benefiting the industry.
Competitive Landscape
The leading market players in the China Online Insurance Market are ZhongAn, China Pacific Insurance, PingAn Insurance, PICC Company, Taikang Life Insurance, Sinosafe General Insurance Co Ltd, and other prominent companies. The China Online Insurance Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the China Online Insurance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the China Online Insurance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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