JD.com establishes a new insurance business group
Jingdong Technology recently adjusted its business. On August 4, JD.com recently integrated the functions of the offline ecological cooperation department, the insurance business department and the insurance agency business department of the platform ecosystem, and established a new insurance business department. This business department will be responsible for insurance business planning, product creation and operational delivery, while integrating the omni-channel capabilities of JD.com, and will be responsible for omni-channel development of integrated financial products. It is understood that during the reorganization of JD.com in February this year, 15 new business groups were established. At that time, the insurance business was incorporated into the platform ecological business group, and no separate first-level department was established. This time it is established as a separate business group. Perhaps a signal to increase the proportion of insurance business is being released.
JD Technology currently has an insurance agency license, and the source of profit is mainly to provide insurance companies with technology services and customer-oriented insurance agency services. The insurance agency business is divided into two channels: online and offline. The online channel is mainly based on JD Ecology and JD Finance APP. The offline channel is mainly through insurance agencies represented by Dingding Insurance and Tianjin Jintou.
According to publicly available data, the insurance premium income contributed by JD's insurance technology business was 276 million yuan, 537 million yuan, 748 million yuan, and 480 million yuan respectively from 2017 to the first half of 2020; the insurance income obtained was 59 million yuan, 146 million yuan, 458 million yuan, and 3.35 yuan respectively. The profit scale is less than 5% of the platform's revenue, and the volume is not large.
**So why JD.com set up an insurance business group this time**? Fintech expert Su Xiaorui pointed out that it may be affected by restrictions on Internet deposits.
Public information shows that in January this year, after the introduction of new Internet deposit regulations, many Internet platforms, including JD Finance, removed Internet deposit products. She believes that the insurance business will help JD.com retain C-end retail users and seek new profit points. She pointed out that this change in strategic direction can also be observed from the user operation strategy of JD Digital. Recently, JD Digital’s user marketing activities for Internet deposits have gradually been transferred to insurance products such as "Xiaojinbao", and a corresponding user growth system has been launched to strengthen the refined operation of insurance investment users.
Source: JIEMIAN
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