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Internet Helps Reform China's Insurance Industry
The Internet wave, which is sweeping the world, will dramatically help reform the old business model of China's insurance industry.
Internet usage in the insurance business will greatly reduce the costs of insurance companies and improve transaction efficiency, "China Daily" quoted John Roglieri, vice-chief executive of the E-commerce department of the world's largest insurance group, AXA's US company, as saying.
"In particular, the policy management cost will drop by 98 percent," he said.
Meanwhile, the infrastructure for developing on-line insurance services will also mature as China's Internet technology makes bigger strides and the number of Internet users grows dramatically.
The Ping An Insurance Company of China, the country's largest shareholding insurer, last month launched its website company, which provides money matter management services, on-line banking, and on-line insurance to Internet customers.
Another major shareholding insurance company in China, the Taikang Life Insurance Co. Ltd, last week also unveiled its website offering on-line insurance information and insurance e-commerce.
Although immediate effect has not been shown, insurers are
upbeat about the future. "with the increasing number of Internet customers, we are optimistic about the prospect of on-line insurance," said Liang Tao, an official with the Beijing office of China's insurance industry watchdog, China Insurance Regulatory Commission.
However, experts and officials at home and abroad admit that e-commerce can not totally replace traditional insurance transaction methods.
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