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Focus Analysis | Crowdfunding, Insurance, or Mutual Aid in the face of a serious illness?

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From 0 to 100 million users, Hubao took only one year.As a traffic-entry product in the Alipay sector, Mutualbao gained 10 million users in 9 days and reached 80 million in 8 months. This growth curve is even steeper than that of Yu’ebao, which was extremely popular at the time.Not only in the Alipay system, but from the standpoint of the mutual aid industry, Mutual Pay also quickly came to the top.Waterdrop Mutual Online, which launched in 2016, currently has a user scale of about 80 million, and is the closest mutual assistance platform to the size of the mutual treasure user.This is largely because the use of mutual treasure is almost zero threshold for users: after meeting a certain sesame credit, users can join for free and also can quit at any time, which is similar to the use of a power bank that you rent with AlipayThe threshold is almost the same.On the other hand, growing on Alipay, a huge traffic platform, Huobao has a natural traffic foundation.But with the increasing number of users being rescued, those who enter with zero thresholds are also faced with an increasing amount of contributions: the number of the first time that Huobao shared the deduction was 1 cent to save a person; until now,The apportioned amount is 3 yuan to help 2,000 people.This directly led to the announcement on November 15 that more than 300,000 people withdrew from each other.And Shen Ye, who is responsible for the operation of Huobao, also said that the product has always faced challenges. “At each stage, users do not understand what health notification is, the method of payment is the payment system or the reimbursement system, and what is meant by the deduction.”In this business model, Huobao maintains its operations by charging 8% of the compensation amount as a management fee.But after one year of operation, the status of this product is still losing money.Yin Ming, president of Ant Financial Insurance Group, also said that mutual treasure does not consider the issue of profit.This makes Huobao more or less public welfare: unlike insurance, it does not require users to pay costs in advance, and provides the most basic and limited level of protection.To make it continue to operate, it is still very important whether the business logic behind the product is smooth.And for ants, what’s the point of running such a product that may have long-term losses?The business logic behind the commonweal Mutual treasure is a major illness mutual assistance program that Alipay launched in November 2018. Joining members who have suffered major diseases (range of 100 types) can enjoy 300,000 (39 years old and below) or 100,000 yuan (40-59 years old), the cost is shared by all members.From the front end, the logic of mutual assistance products is much simpler and clearer than insurance products.Taking mutual treasure as an example, compensation is only roughly divided into two gears of 300,000 and 100,000 according to age, and there are no other differentiated designs.This is related to the positioning of mutual assistance products.”The algorithm design of insurance is very scientific, the purpose is to avoid causing major uncertainty in the insurance company’s operation, but its complexity will also prevent many people who need protection from using insurance.” Yin Ming told 36 告诉 that Huobao wanted to pass the front endExtremely simplified for more people to use.But the simplification of the front end must be the complexity of the back end. Mutual assistance products also need a set of feasible logic to support the operation of the product.In fact, the accounting logic of each mutual assistance product is basically similar to that of insurance products: according to age, disease incidence rates of different age groups, disease outbreak rates and other data, the mutual assistance protection amount is designed, and the age and the apportioned costs are linked to the protection amount to ensure the apportionment.The amount remains relatively fair for young and middle-aged and elderly.The difference is that since each payment involves tens of millions of users, in a series of links such as model education, cost education, compensation claims and surveys, site visits and publicity, disputes and rulings, transparency construction, contract terms, etc.Mutual assistance platforms need continuous investment to ensure their fairness.At present, the mutual operation cost is covered by 8% management fee.According to official data, as of November 27, 2019, the platform has rescued 11,928 critically ill members within one year, and given mutual assistance funds of 1.875 billion yuan.From this, it can be estimated that the management fee charged by the mutual treasure platform is about 150 million yuan.But costs are everywhere.Judging from the two monthly deductions, the payment processing fee from tens of millions of deductions is very considerable.The increase in the number of compensation cases will also bring significant cost increases to risk control and offline investigations.If it is said that the strategic loss is still tolerable for the ants, then it is even more difficult, as the number of joining and the number of rescuers increases, how to maintain a dynamic balance between the supply and demand ends, so that the mutual assistance products can operate stably and sustainably?The number of successful applications for mutual treasure assistance is increasing significantly.Before June, the number of successful applicants was only a few per period, but in June, the number exceeded 100, and in November, the number exceeded 2,000.The increase in the number of rescuers will inevitably lead to an increase in the amount of contributions. If the slowdown or even stagnation of user growth is superimposed, mutual assistance products including mutual treasure will inevitably face a periodical dilemma.For now, the growth momentum of Huobao is still there, and the proportion of quitting users is relatively low, and the operating situation is considered stable.But the situation of water drops is not the same: in April this year, the number of users shared by the water drops was about 40 million, and by November, this number had dropped to more than 16 million.In the long run, when the number of users reaches a certain level, under the law of large numbers, the apportionment amount of a single user will no longer change drastically.Therefore, it is particularly important for mutual assistance platforms to have sufficient funds and operational capabilities to survive the bottleneck period.Even if it is operating at a loss, it will still have important value for Alipay.First of all, it is a product that can firmly grasp sinking users.According to the official data of Ant Financial, one third of the users of Hubao are from rural and county areas, and nearly 60% of them are from third-tier and below cities. This is a very sinking user portrait.The previous data released by Water Drop Mutual Aid also shows that more than 70% of users are from sinking markets.In addition, 24% of users joined Huobao as a family member: This means that they can join Huobao even if they have not used Alipay before and have not accumulated sesame credits.Therefore, for Alipay, this is a very suitable product for pulling users in sinking markets.In addition to the traffic aggregation effect, due to the need for monthly publicity, compensation and other links, mutual treasure can also play a role in revitalizing Alipay’s existing traffic.This is probably why the giants have entered the field of mutual assistance this year-JD.com, Didi, Suning, Qihoo 360, Meituan, and Baidu have already begun to try.As for Alipay itself, according to insiders, “how many people are using the three products in Alipay at the same time” has always been an important assessment indicator within Alipay, which shows that ants attach great importance to this indicator of user activity.As a community-based product, mutual assistance has advantages in effectively improving user stickiness.According to Yin Ming 36 氪, there are currently less than 10 people in Huobao ’s content team. The assessment for them is to produce 100,000 plus content per day. He hopes to increase the user’s frequency and use of useful content deposited in the community.duration.In a business model, when new and retained, there are certain guarantees, and only a suitable product or service underpinning can promote conversion.For high-traffic platforms, it is relatively smooth business logic to use mutual assistance as a super entrance to aggregate traffic, obtain users, and enlightenment on insurance, and then overlay other related products and services such as insurance as user awareness and demand increase.How this model unfolds is relatively easy to imagine: one path is to push insurance advertisements directly on the platform; the other is to publish insurance products directly on the platform on the premise of obtaining qualifications.Ant Financial, Water Drop, JD.com, Baidu, Meituan, and 360 Finance have all obtained insurance broker licenses.With sufficient data support, insurance products can easily achieve precise docking with users.At present, Huobao is still slow in commercialization, and the profit pressure of startups is greater.Water Drop Mutual began testing the long-term insurance sales in May this year. The monthly premium of the long-term insurance was only 6 million yuan. However, as of November 25, the annual premium of its new long-term insurance exceeded 100 million yuan in just 6 months.Time has increased by 20 times.However, as a product that provides basic guarantees and has the nature of public welfare, if it is not handled properly in the process of speeding up commercialization, it will easily lead to a crisis of trust. Once trust no longer exists, the model of mutual assistance itself will be difficult to sustain.Recently, Drip Drop’s fund-raising business, Drip Drop’s offline team, swept the building in the hospital to help the sick to raise funds through illegal means, and to divide it into funds, and even KPI assessment requirements.For water droplets, crowdfunding and mutual assistance are also the front-end entry products for insurance sales. Although there are slight differences in the product form, most users’ perception of the difference is not obvious. The disorder of the crowdfunding business will also greatly affect mutual assistancebusiness.At present, mutual assistance has not matured to the extent that it can promote large-scale commercialization. Its first task is still to ensure reasonable and stable operations..