recently，JD.com obtainsinsurance licenseThe news attracted great attention from the market。As early as around 2013，JD.com has been rumored to be seeking an insurance license；After about 5 years of planning,，Finally got the key financial license in hand。Internet platforms attach so much importance toinsurance business，Essentially derived from Internet insurance’s transformation in traffic、scene embedding、Financial technology ecological extension has significant commercial value。
in recent years，Internet insurance maintains rapid development。Have user scale、Internet companies with data capabilities and online scenarios，Naturally, you will not miss this business opportunity that has both traffic advantages and financial attributes.，They are accelerating their efforts to seize the insurance market.。
Growth potential of the Internet insurance market
Internet giants continue to plan for insurance licenses，Send a clear signal：China's Internet insurance market still has strong explosive potential。
Huang Hong, vice chairman of the China Insurance Regulatory Commission, previously pointed out，2017January to October，Chinapremium incomeReached 3.2 trillion yuan，A year-on-year increase of 20%，China is about to become the world's second largest insurance market。at the same time，China’s insurance penetration is 66% of the global average，Insurance density is 53% of the global average，There is still much room for development in the future。
Calculated based on premium income growth rate，Insurance fundsTotal investment will reach 23 trillion yuan in 2020。Premium funds formed by insurance business，Have long-term、Low cost capital attributes，Can be used for investment allocation within a compliance framework。This also explains why the domestic capital market continues to actively seek to obtain insurance licenses。
Capital leverage value of insurance license
The reason why insurance licenses are highly valued by capital，The key is that insurance funds can form a long-term stable fund pool，And support asset allocation and industrial investment under the premise of controllable risks。There are already mature cases of similar models in international capital markets.，The most representative one is Buffett's use of insurance assets through the Berkshire system.。
One of Buffett’s core strengths，is to find a way to use leverage、A path to long-term investment。He uses Berkshire's capital to invest in insurance companies，Make insurance funds a source of long-term, low-cost funds，not only provide them with continuous and stable financial support，It has also become a large-scale acquisition company、An important help in investing in stocks。
When the investment achieves a higher return，The capital strength of insurance companies has been further enhanced，And then have more funds to acquire more companies or stocks。funds、invest、A virtuous cycle is formed between returns and insurance business，Make the snowball grow bigger。
The strategic significance of JD.com’s investment in Allianz Property & Casualty Insurance
Domestic capital systems are actively deploying along similar paths，JD.com is a typical case。
recently，JD.com invests 484 million yuan in Allianz Property & Casualty Insurance，Became its second largest shareholder，Officially launched an important shot into the insurance industry。Allianz Property & Casualty Insurance has strong strength，It’s no surprise to become a JD.com partner。Allianz Property & Casualty China official website shows，The company was established in 2003，Separately funded by Allianz Insurance Group，Registered capital 805 million yuan。Allianz Insurance Group was founded in Germany in 1890，Nearly 130 years of professional insurance experience。
This equity change also means，Allianz Property & Casualty Insurance will be changed from a wholly foreign-owned enterprise to a Sino-foreign joint venture。Allianz Property & Casualty has announced its involvement in the Internet insurance field many years ago。For future development plans，Allianz Property & Casualty Insurance Company stated，Allianz Group and JD.com have reached a long-term cooperation，Will build digital insurance joint venture in China。Both parties will combine their respective advantages，Develop and deliver attractive assurance solutions，To meet the rapidly evolving needs of Chinese consumers。
From insurance business to fintech ecosystem
Whether it is Tencent, which is the first to lay out the insurance industry,、Alibaba，Or is Baidu catching up from behind?、Jingdong，All release the same trend：What Internet giants will do in the future is not just the insurance business itself，Instead, we will build a “fintech ecosystem” around our own ecosystem.。
As the new second largest shareholder，Liu Qiangdong also expressed clear confidence in the future of the insurance business：“Insurance companies must return to insurance to have a future.”；at the same time，It also mentioned，JD.com’s 120,000 couriers spread across the country，Express delivery in the future，Can also assume the role of insurance officer，Provide door-to-door service or on-site survey and loss assessment。
The business space in China’s insurance market is attractive enough，Have license、scene、A platform enterprise with traffic and service capabilities，All hope to gain deeper participation in it。
Three core advantages of Internet insurance
The reason why Internet insurance has become an important direction for platform companies to compete for，The core lies in its three types of advantages:：
- cost advantage：Insurance companies sell insurance products through online channels，Open up multiple business links in traditional sales channels，Helps reduce costs，Make premiums relatively more competitive。
- Convenient advantage：The online insurance application process is shorter，It takes less time for users to apply for insurance，Can significantly improve purchasing efficiency and service experience。
- Innovation advantage：Internet platforms can quickly respond to user needs，Launch new insurance products，And with online shopping、logistics、Ecological scenarios such as consumption form stronger adhesion。
predictable，Insurance finance license serves as an important compliance basis for entering the insurance industry，Will further serve the scenario needs of platform business。As consumption scenarios continue to refine，Insurance business will also gradually extend to work、Life、Social and more dimensions。
Industry Competition and Compliance Trends
Forecast of the "2017 China Internet Finance Annual Report" released by the China Internet Finance Association，With the competition and integration between the insurance industry and the Internet industry，In the future, industry competition themes will be more diversified，Market competition will further increase，Cross-shareholdings between companies、The trend of competition involving multiple parties may further intensify。
For plans to enter insurance、wealth management、For companies in the cross-border finance and financial technology fields，License is not only a market access threshold，It is also the business boundary、Capital cooperation、The basis for product innovation and long-term compliance operations。We recommend that companies evaluate licensing paths simultaneously at the early stages of business planning、Equity structure、Regulatory requirements and subsequent operational compliance costs，To reduce the risk of strategic trial and error。
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