WeSure's online insurance serves well in time and need

What's in insurance? A risk management method, a psychological safe harbor, and perhaps, a vehicle for good causes.

This last feature has been most reflected by the ongoing novel coronavirus pandemic, officially known as COVID-19, which has resulted in people being barred from social interactions to curtail its spread. Subsequently, philanthropy not only has found its way home, it is also thriving on the internet at people's finger tips.

"When you have a new situation like this, the internet, and internet-based insurance, all have a big role to play," said Alan Lau, CEO of WeSure, the online insurance arm of internet conglomerate Tencent Holdings.

Insurance is a constant. But the traditional way of purchase, which involves lengthy inspections and redundant paperwork based on a mix of self-reported information, doesn't cut it with the smartphone generation.

Thanks to technological advancement, the capacity to collect, store and analyze data has revolutionized the centuries-old industry, transforming from a reliance on old-school risk management models to real-time, personalized online solutions powered by data and algorithms.

Lau, an internet veteran who has profound experience in the digital realm, said internet-based services have greatly facilitated the flow of information, goods and services.

For instance, WeSure has teamed up with sister messaging tool WeChat, which has over 1 billion users, and Dingxiang Doctor, a dedicated medical information app, to launch an information authentication service that acts as a myth buster, when rumors tend to soar amid uncertainties.

And goods, ordered online and transported by data-backed couriers, were effectively delivered to residents in Wuhan, Hubei province, when the city was placed under an unprecedented lockdown.

A third role, according to Lau, is the construction of public infrastructure that is conducive to mobilizing social resources and enhancing efficiency during public emergencies.

He pointed to the use of technology and the accompanying deployment of volunteers in China as unique practices, which represented a phenomenal level of social mobilization that helped the country stem the virus.

WeSure, the brainchild of Tencent two years ago, has shouldered similar enterprising undertakings. As protection becomes more important in a public health crisis, WeSure circumvents the hassle of meeting insurance agents in person and filling in clunky forms that could take probably days to complete.

"Instead, they just need to open up their WeChat, which everyone has in China, and access the insurance products at their fingertips," Lau said. "China really has a head start in this." WeSure currently boasts over 100 million effective insurance policies for some 33 million insured users.

The urgency of the virus has prompted Lau's team to act fast. The company has unveiled complimentary coverage plans dedicated to a couple of segments: front-line medical workers, small and medium-sized enterprises, volunteers and ordinary citizens.

For instance, over 100 doctors and nurses among the 100,000 medical staff fighting the virus have made claims. They are each entitled 20,000 yuan to 100,000 yuan ($2,810 to $14,070) worth of compensation as circumstances vary.

In a similar realm, small business owners under the bespoke insurance plan, should they get infected by the disease, would be subsidized 1,000 yuan each day for 30 days or till their business reopens, whichever is shorter.

A third pillar, protecting community and social workers, is based on collaboration with the Ministry of Civil Affairs.

Aside from a comprehensive coverage for all volunteers nationwide involved in the epidemic prevention and control, WeSure pledges to offer 50,000 yuan to each volunteer that is diagnosed as severe or critical infections of the COVID-19.

Family members of those deceased community workers due to the virus are subject to 250,000 yuan as compensation.

The winning formula is what Lau labeled as a combination of "China speed and internet speed".

"Let's put it in this way, the time has indeed chosen us, and that has aroused a huge sense of mission to really provide protection and insurance to the likes of doctors and smaller merchants, who are lifesavers and the backbone of the economy."

According to Lau, the guiding rationale for the super-fast rollout boils down to the same principles that gives the ancient trade a digital makeover: the internet is making insurance a lot easier to access, much more transparent, and way more affordable.

This contractual relationship is made even more democratic and symmetrical, as artificial intelligence and the wealth of data lend a helping hand in tailoring client needs, and consequently excels in risk control.

"A consortium of factors, ranging from age and geographical location to consumption power and credit history, determine the product portfolio. And insurance premiums are adjusted automatically based on track records upon your purchases," he said.

The scheme has begun to pay dividends. Lau said about one-third of the volume and premiums are generated from auto recommendations, indicating that tailored and user-friendly products are set to alter the insurance landscape.

Data show that WeSure's premium quadrupled in 2019 from the previous year, and this January alone has witnessed figures double month-on-month. Lau forecast the unexpected contagion could catapult the nation's insurance sector to the front line, and that will propel people to raise awareness of both financial protection and health management.

For WeSure, such shifting mindsets also represent novel opportunities to engage with users and market products. The company has unveiled mini programs to encourage healthy lifestyles.

Lau said WeSure operates under a Costco-type model, where it hand-picks and crafts its nearly 30 products through delicate co-creation with insurance companies. It has also introduced scenario-specific insurance policies to meet the personalized needs for prospective insurers, and has equipped each buyer with an insurance adviser "for continuous engagement and meaningful interaction".

Prior to taking the helm of WeSure, Lau spent decades at McKinsey and as senior partner consulting top-notch clients in their digitalization drives.

He admitted China has been at the bridgehead of pioneering some of the world's best digital practices, and this is notably true in the current fight against the virus.

The crisis also underscored the importance of "ecosystem", which, in WeSure's case, refers to the adoption of Enterprise WeChat that allows synchronized dialogue, as well as Tencent Meeting, which supports parallel conversations and video conferencing from different locations.

All of these services fall under the Tencent umbrella. Such an approach democratizes decision-making processes, raises overall efficiency and enhances unity, Lau said.

"A lot of innovation is happening here. Ecosystems like Tencent and WeChat allow you to really scale very quickly."