(1) is conducive to expanding sales channels. New insurance institutions can quickly lay out the national market through the specialized insurance service platform based on the Internet, while established insurance institutions can use the specialized insurance service platform based on the Internet to establish corporate image, improve service quality and realize refined sales.
(2) It is conducive to saving sales costs. For traditional sales channels, network insurance not only reduces the sales cost and advertising cost of opening business outlets, but also reduces the agency cost and commission expenditure, greatly reducing the expenses. Foreign experience shows that the transaction cost of online insurance is extremely low, only 10% of that of commercial stores. According to the estimation of Swiss Reinsurance Company, the cost of sales, management and claims saved by American insurance companies through online life insurance accounts for about 12% of the total cost, and the cost saved in enterprise insurance accounts for about 9% of the total cost.
(3) It is beneficial for insurance institutions to innovate sales and service methods, adopt differentiated competition strategies, increase market share and reduce operating costs.
However, for complex insurance types that need repeated consultation, traditional insurance is conducted face to face, which is more in depth and quality than online insurance.
Judging from the current situation, online insurance is suitable for simple insurance.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.