Insurance E-Business Trends in China

by Wenli Yuan, June 13, 2006

Abstract

Beijing, China June 13, 2006

Celent explores the development of the Chinese e-insurance market.

Internet usage in China has grown rapidly over the past 10 years, increasing from 620,000 users in 1997 to 111 million people in 2005. Insurers have been working to capitalize on this trend. The e-insurance market is moving from an embryonic stage to a developmental stage. A basic infrastructure for e-insurance has developed, and 10% of insurance websites now allow users to purchase insurance online.

Celent's latest report, , provides an analysis of e-commerce websites in the Chinese insurance market and offers strategic and practical suggestions for insurance companies hoping to boost business development through e-commerce.

"An increasing number of high-level management personnel in insurance companies are beginning to realize that e-commerce is a strategic issue, and it is not merely about the construction of a website or promotion of the company but also about providing a novel sales channel and services channel," says senior analyst Wenli Yuan, author of the report. "Under the current situation, the actual amounts of revenue and business volume that the online method of application for insurance policies can bring to the insurance companies, as well as the development trends, are issues that must be considered by insurance companies in implementing their e-commerce strategies."

The report includes several suggestions for insurance companies implementing e-commerce solutions. Celent advises companies to develop insurance products tailored for online sales, specifies what those products are, and recommends that insurance companies use a price differential strategy for traditional insurance products. The report includes several other useful strategies.

The 41-page report contains nine figures and nine tables. A table of contents is available online.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Beijing, China June 13, 2006

Executive Summary 3
Background 5
  Internet Usage in China 5
  Legal Environment for E-Commerce in China 7
  Insurance Market Trends in China 8
Insurance On The Web 13
Online Insurance Sales 15
  B2C E-Insurance 15
  B2B E-Insurance 22
  Challenges and Opportunities 23
Online Insurance Service 26
  Services Aimed at Ordinary Browsers 26
  Services Aimed at Insurance Customers 27
  Services Aimed at Sales Agents 29
Technology Platforms 32
Third Party Insurance Websites 33
Recommendations 36
Objectivity & Methodology 40

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