Ren Bin, CEO of Insurance Geek: Geek 6 years, pioneer and innovation

"In the commercial insurance circuit, group Insurance is solving People's Daily high-frequency medical problems." Said Ren Bin, founder and CEO of Insurance Geek.

Group insurance has never been the hot spot on the insurance circuit, but as technology changes and companies focus more on employee benefits, its value is being unleashed. Data show that in 2019, China's group health insurance maintained a growth rate of 35.6%, and continued to maintain the same growth rate. In 2021, group health insurance is forecast to exceed 300 billion.

Having spent 10 years as an actuary at a traditional insurance company and already at the top of the pyramid, Mr Ren did not work as far as the eye could see. In 2014, the hottest year for insurance technology startups, Ren Bin stepped out of his comfort zone and founded insurance Geek, dedicated to providing solutions to the high-frequency and low-amount medical needs of employees.

In the insurance industry, Ren Bin realized that the development of mobile Internet and data technology is changing the underlying logic of insurance, which means the opportunity for industry reform. Group insurance, which used to consume a lot of manpower in offline scenes, can be "online" to free hands. Group insurance products, which used to be the same, can meet the personalized needs of enterprises driven by more precise and accurate data.

At the same time, the society is also undergoing structural changes, aging is increasingly pressing, the coverage of traditional medical insurance is limited, and the importance of commercial insurance in medical payment is becoming more and more obvious. Among them, group insurance, which can solve the problem of high frequency and low amount of medical demand, can coordinate with social security and individual payment more quickly, realize tripartite medical payment, and solve the problem of medical efficiency and cost under the aging society.

Driven by the industry trend and social demand, Ren Bin chose to pursue group insurance. In the past seven years, insurance geeks have focused on group insurance, and have completed five rounds of financing, including Fosun Ruizheng, Legend Star, Qingkong Ginkgo, Legend Holdings, and The National Development Fund for Small and Medium Enterprises, all of which have added to this track.

The long-term value behind the drudgery of group insurance

In the eyes of traditional insurance practitioners, group insurance is a "drudgery" with extremely low profits.

When the platform sells 10,000 copies of critical illness insurance, there may be more than a dozen people who really need to provide services every year. If the group insurance covers 10,000 employees, the platform will provide 6,000 to 7,000 person-times of services a year, and it will also cover all parts of the country.

High frequency of the amount of health care, low pay and do lots of services, is Ren Bin group has said the "bitter", "the front end of the group is a to B, each enterprise's demand, involves the set of personalized solutions, from the passenger side to plan, to the end product, sales, client and the server, is a complex and complicated, long chain, so do risk more bitter."

Why did Ren Bin choose this "hard job"? There are two major factors, one is the aging of society, the other is the underlying logic of the insurance industry changes.

"China, as a country with a rapidly aging population, will face many problems, one of which is health care payment. Fewer young people, less effective labor force, more elderly people, higher consumption of health care costs, the health care cost matching of the whole society will be reduced." "Group insurance may seem like a hardship, but it can better integrate insurance payments with medical services in terms of addressing People's Daily medical needs," Ren said. "It has long-term social value to solve the burden of paying for health care caused by the aging population in the future."

Census data show that for the seventh time in our country, 60 years of age or older population grew by 5.44% in 10 years, while the working population has fallen by 6.79%, the arrival of aging, for health resource allocation and health have brought a big challenge, commercial health insurance complement pay effect needs to be released, which involved the principle is that the frictional force balance.

Titanium Ren Bin told media App, in medical service pay link, commercial health insurance is the user and the extra layer of the friction among medical institutions, "the value of the commercial health insurance is to have a large number of users, so it is in the pay of the user's time, will affect both the user and the medical service, so as to link up a more efficient payment system. Increasing efficiency can solve the cost problem."

In Ren Bin's opinion, this is an inevitable new cycle after the mature development of commercial health insurance. But at present, commercial insurance accounts for a small proportion of medical payment, which is not enough to affect the pricing of medical service. Data from 2019 show that the total compensation for commercial insurance accounts for less than 3 percent of the total national health expenditure.

At present, the low proportion of commercial health insurance gives enough space for development. Compared with developed countries, the proportion of individual payment is generally around 10%, which is obviously higher in China.

Ren bin believes that China and the United States are similar in terms of underlying structure. In the United States, the ratio of payments like Social Security, commercial insurance, and individual payments is about 5:4 to 1; In China, social security payments range from 55% to 60%, personal payments are around 35%, and commercial health insurance accounts for only less than 5%. This means that there is still room for an increase of about 30 percent in the overall market if commercial insurance payments in China are to replace nearly 30 percent of individual payments.