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Why is the insurance bought online much cheaper than reality?

A few days ago, the products of Ping An Fu and a small company were evaluated, which was reflected by many readers.

Why haven't you heard of the insurance you recommended?

Why are the prices of products of big companies so different?

Are these small companies credible?

Many people have these concerns. In fact, dad Yang Tao can particularly understand this feeling. After all, the product prices of unknown insurance companies will be much cheaper, and Chinese people always have the inertia thinking of "cheap but not good goods", but they want to be cheap and want to have good goods, so they will be entangled. Which insurance company is stronger? I just sorted out the relevant content, hoping to help you: the latest list! Top Ten Insurance Companies in China

Today, I will tell you how insurance products are priced. Why is the price gap between different companies so big?

1. Whose pocket did we pay the extra premium? To understand this problem, it is necessary to clarify the composition of a premium.

The premium can be divided into two parts: pure premium and additional premium.

Risk premium: it is specially used to pay the claim expenses during the underwriting period. Although this part of the cost cannot be specifically determined, it can be roughly estimated.

Savings premium: this part is reserved by the insurance company as investment income.

Pure premium, there is little difference among insurance companies.

The main reason for the price difference is the extra insurance premium.

1. Channel cost: supporting the big business of 8 million people.

Generally speaking, the traditional insurance sales channels include agent channels, bancassurance sales, telephone channels and so on, which we collectively call offline sales.

Only in the past two years, with the popularity of the mobile Internet, there has been the saying of online sales. For offline sales, it mainly depends on people. In other words, the insurance salesmen around us are collectively called insurance agents.

In 20 17, the number of insurance agents has reached 8 million. 18 and 19 are not expected to decrease.

And to support so many people, the core depends on commission, that is, commission.

For various reasons, insurance is still difficult to sell in China.

Everyone can contact a limited number of people, and it is often difficult to talk about it. It is difficult to make a single order for several days, and the efficiency is extremely low. Most offline agents can't make money.

The difficulty of sales also determines the level of commission. If we want to change this situation and let these agents maintain a minimum livelihood, we need a considerable commission. Therefore, insurance companies will set a high commission system for agents. Generally, more than half of the premium in the first year will be taken away by the agent.

At the same time, the agent thought that customers who want to buy insurance are hard to catch and have to earn more money. This kind of psychology has a lot to do with the current insurance agent system. At present, agents do not have any basic salary and welfare benefits, and all brochures and activities need to be undertaken by themselves.

If agents want to cover these expenses and earn their own income, they must recommend products with high commission. If the commission is high, the insurance company will make more money and the product cost performance is not high. Such agents are usually team managers and directors who have worked in insurance companies for a long time and are mainly profit-seeking.

In fact, at present, more agents we contact are in a state of blind follow-up and don't understand the whole industry. I will sell whatever the company tells me to sell. There is a saying in the industry that if you want to get rich, you must recite words first. When your agent takes a pen and paper and calculates each expense with you in detail, it is actually rehearsing the words n times in advance.

What kind of products get the highest commission and cheat the most people?

It is the kind of product that guarantees "big and complete" everything. It is responsible for diseases, deaths, accidents and medical care. All kinds of miscellaneous things are packaged and sold to you. Consumers don't know how much it costs, but long-term accident insurance has the lowest cost performance.

The consumer only thinks that the agent is right. There are many insurances. It is normal for me to pay more. into the pit will be very smooth!

Most of the premiums in previous years were taken away by agents. Where have the high premiums for more than ten years gone?

To put it bluntly, the rest is the operating expenses of the insurance company.

2. Operating costs: High operating costs "swallowed up" the premium.

For operating an insurance company, there is a cost, whether it is the rent of business premises, or the salary, advertising fee and promotion fee of backstage staff and customer service staff.

The first thing to bear the brunt is the advertising cost in operating costs.

It can be seen that this is the advertising cost of the five major A-share insurance companies, which is billions or even billions at every turn.

The overall cost of 18 decreased by 27% year-on-year, which was the first negative growth in recent years.

China Ping An, the king of advertising, spent more than 20 billion yuan on advertising in 17, and the cost in 18 was among the best. Like Ping An in China, China Life Insurance and China Pacific Insurance, which have been increasing their advertising fees in recent years, also showed a downward trend in advertising fees in 20 18.

As for why the expenses will drop, it is not that the insurance company gave up publicity, but that the overall performance of the capital market was not satisfactory in 20 18 years, and the income obtained by the insurance company's investment naturally dropped a lot, which is the core reason for the decline in advertising fees.

This is also one of the reasons why insurance for big companies is expensive. Ping An Fu is expensive because the premium of Ping An brand is too high, and it is the most advertised insurance company in the world. However, wool comes from sheep, and big companies can have so much income and money to advertise. To put it bluntly, it is still a premium that our consumers have worked hard to pay.

3. Deep-seated reasons: the historical burden of insurance companies.

I believe many people have bought or heard of the return products or wealth management products of insurance companies.

For this kind of products, the predetermined interest rate of insurance has been around 4% in recent years.

What you may not know is that before 1999, the insurance interest rate was 8% or even higher.

This means that for these stock policies, insurance companies must earn more than 8% a year in order not to lose money.

At that time, people who bought these policies made money.

However, with the downward trend of interest rates, these policies have gradually become a heavy burden for insurance companies. These companies with historical burdens are all big companies we are familiar with.

China Life Insurance was established in 1949, China Ping An was established in 1988, Pacific Life Insurance was established in 199 1, Xinhua Life Insurance and Taikang Life Insurance were established in 1996 ... Because the return to customers is too high, it exceeds the investment income of insurance companies, and insurance companies have

Insurance companies can only tear down new walls to mend old ones and fill their mistakes with the latest insurance policies. Earn more money on the new policy to make up for the old deficit. Therefore, consumers who buy insurance now are also paying for the mistakes of some insurance companies to some extent!

Based on the above points, we can see that the high insurance price is mainly caused by channels, operations and history.

You paid more insurance, so you went to these places.

Insurance is very cheap. In fact, the pricing system of insurance is standard. The life cycle table published by the state is the pricing standard of the whole industry. So the price of the product depends entirely on the company's operating costs. When the operating cost is high, the product price is naturally high.

At present, the development direction of insurance is the separation of production and marketing, which means that insurance companies only provide protection, and the expenses encountered in the sales process are borne by insurance agents and insurance economic companies. There is no need to set up branches all over the country, let alone bear the publicity expenses. Do you think the cost is low?

At present, the insurance of online channels is not cheap, but more importantly, it is open and transparent, with transparent prices and responsibilities.

Tell you, there is a formal insurance company behind every insurance product, and every product can be sold on the market, and it has also been supervised and filed by the China Banking Regulatory Commission.

It is actually a good thing to write at the end with doubts. Only when you have doubts will you verify it, so that you can master more information, improve your knowledge and see the depth of the problem. What I fear most is that some people are skeptical about everything. If they don't understand themselves, they will blindly believe their old ideas.

You know, it's already the internet age, and 5G is coming. You know, not only offline agents, but also many more cost-effective Internet insurance to choose from.

Finally, in today's era, changes are too fast, and it is not a bad thing to learn more and understand more.