The Chinese insurance market booms

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The Chinese insurance market booms

The global insurance premiums are expanding, and the contribution of Asian markets is significant. In particular, the Chinese insurance market plays a vital role as being responsible for most of the growth.

The insurance company aimed to adapt the developed app to Chinese needs

Daxue Consulting’s client, a multinational financial services company with a focus on insurance, developed a car-related app with the goal to provide assistance through geo-localization and real-time data delivery. Before launching the application in the Chinese insurance market, the client sought to validate if it matches with Chinese consumers’ needs and perception. Therefore, the organization asked Daxue’s research team for support.

A tailor-made project to fulfill the client’s request 

As a first step, Daxue Consulting executed an extensive desk research to get an overview of the Chinese insurance market. It comprised the analysis of the client’s key competitors, its services, operating systems, apps and functions, the comparison of different car insurances, and the assessment of regulations, and legal requirements. Additionally, the team evaluated the distribution trend of car ownership in various cities.

The second step encompassed the recruiting, screening, and execution of focus groups. Daxue Consulting divided the qualified respondents into two groups: car dealers and industry experts as well as end-users.

Besides questioning the attitude and awareness of the client’s brand in the Chinese insurance market, or their expectations, experiences, and preferences towards car insurances, the core questions targeted the needs and perception towards the client’s application such as

  • The eagerness to use the app and why
  • The attractiveness of functions and their importance, the ease of the interface
  • The willingness to pay for it as well as amount details and preferred sales channel
  • Ideas which features to include
  • Competitors’ advantages and disadvantages

The questions for the car dealers and industry experts additionally focused on potential business models, sales, promotion, and distribution aspects, for example:

  • The willingness of car dealers or 4S-stores to cooperate with insurance companies and connected expectations (e.g. commissions)
  • The possibility of bundle sales and the attention paid to advertisement
  • Common complaints about insurances

Deliverables: thorough insights into the Chinese insurance market and the perception of the app

Finally, Daxue Consulting analyzed the data gathered from the research process by applying a vertical as well as a horizontal analysis and prepared an executive summary for the client. The report included in-depth insights on the acceptance of their car-related app as well as recommendations which adaptations are necessary to make. Additionally, the consultants conducted a SWOT analysis and Porter’s five forces analysis to determine on the one hand the level of competition in the Chinese insurance market and on the contrary potential opportunities and threats to consider in the long run.

Matthieu David-Experton, CEO and founder of Daxue Consulting, explains: “The research helped us understand where the value was perceived as for the app and the device, and thus adapt the business model to where the value was for the user and the partners. It was solving points and struggles that we could quantify in terms of monetary value.”

Read more:

Market research: Chinese upper class to look towards foreign life insurance policies

Soar or Crash: Chinese Auto Retailers Look to Transition and Upgrade

Crowdfunding in China: Overcoming the Differences to Access a Unique Market

Focus groups in China: Collect first-hand consumer insights

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