Internet a better engine for insurer MetLife China

By Li Xiang (China Daily) Updated: 2015-09-23 10:03

George Tan, CEO, Sino-US United MetLife Insurance Co Ltd

Digital strategy assists insurer's transformation to meet growing demand for its products

Sino-US United MetLife Insurance Co Ltd, a joint venture between the largest United States life insurer, MetLife Inc, and Shanghai Alliance Investment Ltd, sees the Internet and rise of online social network platforms as a major engine to drive its business in the rapidly evolving Chinese insurance market.

While maintaining its traditional sales channels through banks and agents, the company is focusing on the digital strategy to expand its client base and tap into the growing demand among Chinese customers for easy-to-purchase life insurance products, CEO George Tan told China Daily in a recent interview.

The company is now in discussions with 20 partners, including social media network companies, online retailers and e-commerce platforms owned by major banks, to explore new business models and opportunities, Tan said.

Three company products are already available on Alipay, the online payment service provider backed by China's e-commerce giant Alibaba Group Holding Ltd, Tan said.

"The Internet provides us a better engine … and it is substantially transforming the business model of the sector and the way insurance companies interact with their customers," he said.

Previously, most insurance companies used an outbound marketing approach to get its message to potential clients through methods such as advertisements and direct calls. Now companies are utilizing inbound marketing, a trend that seeks customer attention through social media networks and mobile applications, Tan said.

"Now our customer conversion rate of inbound marketing has been risen from 20 percent to 50 percent," he said.

The digital platform has become an integral part of MetLife's long-term strategy to build and improve product recognition in China.

The partnerships with social media networks also enable MetLife China to gain up-to-date knowledge and deeper insights on changing consumer demand and purchasing behavior, Tan said.

New technology and the increasing popularity of mobile apps have become an important catalyst for a Chinese insurance market that was once highly regulated, but now is gradually opening up.

The total assets of the Chinese insurance sector reached 11.3 trillion yuan ($1.77 trillion) by the end of August, an increase of 11 percent from the beginning of the year, according to data from the China Insurance Regulatory Commission.

Foreign life insurers earned total premiums of 51.4 billion yuan last year, up 37.1 percent year-on-year. Their business accounted for a 5.45 percent of market share in China, an increase of 0.56 percentage points, according to the commission.