Online insurance is gaining popularity in China, driven by an increasing number of young people looking to cover themselves using quick, low-cost, social media-powered apps, according to a new industry report.
The survey by WeSure, an online insurance portal backed by tech conglomerate Tencent Holdings Ltd, finds young people have become the main buyers of online insurance.
Among those surveyed, 80 percent of online insurance applicants were born in the 1980s and 1990s, and more than a third, 36.4 percent, were aged under 24.
Liu Jiaming, executive director and CEO of WeSure, noted that young consumers grew up with the internet and so would be more comfortable with shopping online.
"Young people will be the future driving force as they have a greater awareness of online insurance," he said.
WeSure was set up in 2017 to supplement Tencent's efforts in the insurance sector. Since then, it has been fueling innovation in the traditional insurance sector with its technology, products and services.
By the end of November, WeSure had become Wechat's most popular insurance mini program－a program that runs inside the Wechat app－with 20 million active users per month.
With an aim of making insurance accessible to everyone, Liu said that the platform has lowered the price as much as possible. Applicants pay a minimum of 5 yuan (70 cent) per month to buy insurance topping 500,000 yuan.
"During this process, technology is an important part of business－epitomized by the fact that 70 percent of customer service is provided by artificial intelligence," said Liu.
"Such a technology-oriented process drives efficiency to a great extent. Up to 80 percent of users of WeSure can get their compensation within a day," he added.
In terms of the future, Liu said that the platform will leverage more AI power in businesses including the settlement of claims, where AI can help deal with complicated claim requires and new claim recommendations.
"We will develop more scenarios in online insurance. We hope to more people using more interesting means," added Liu.