Digital risk mitigation with Ping An

Ping An Insurance is a valued partner of If Insurance, supporting our clients in their operations in China daily. Ping An started to establish the risk management system since 1995 and received ISO9000 certification of risk control system in 2016 and inaugurated its first fire risk lab in 2018, now becomes the first to conduct research and educate clients in this field in China.

The adoption of risk management tools at Ping An has been remarkable. By aiming to better serve clients locally and develop cutting-edge tools, the company has empowered almost 500 full-time and certified part-time risk engineers, and other industry experts with ample Chinese data samples to enhance their understanding of domestic risks. Consequently, insurers and clients benefit from reduced economic losses, improved efficiency, and optimised operations offered by the digital risk system.

Preventing losses

The Digital Risk System (DRS) aims to minimise economic losses, improve efficiency, and optimize operations. Its primary value lies in disaster prevention capabilities for the Chinese territory. Beyond functioning as a risk management map, the DRS integrates with Ping An’s business systems, including underwriting, sales, and survey management. Ping An utilises the system to manage cumulative risks, develop and price catastrophe (Cat) products, and conduct online surveys and facilitate claims processing. Customers in China benefit from the combined capabilities of this integrated business system, such as streamlining on-site surveys.

Ping An collects data through natural hazards labs and remote sensing data labs and collaborate with a satellite company, gathering essential information for the Digital Risk System. The DRS includes a digital risk map that provides insights into 11 different disaster types and provide remote sensing service for on-line surveys, subsiding risk assessment and claim settlement evidence collection. These insights, combined with rating and analysis reports, can be shared with clients. Moreover, the maps generated by the system serve as valuable guidelines and models for underwriters as well. 

Predicting risks

Thanks to real-time data, Ping An’s alert capabilities are significantly enhanced. The model offers warnings of 18 types of natural disaster up to 3 days forecasting and prediction with accuracy rate higher than 70 %. For instance, when a windstorm approaches Shanghai, the model can provide forecast up to three days ahead the national alert is 12 hours ahead. Additionally, this tool integrates with various client service apps, allowing to reach clients promptly with critical information and guide them in minimising potential losses.

Ping An is transitioning from DRS2 to the new tool, DRS3. Hence, DRS3 will not only focus on natural catastrophes but also provide IoT technologies for safety production monitoring. This enhancement underscores Ping An’s ability to add value to business systems. The information gathered is then disseminated through various apps, empowering clients to serve efficiently, and supporting experts in their work.

Mia Himberg, Head of International Services at If Insurance, explains, “For our customers, having a partner like Ping An is extremely valuable. Our clients benefit from the advanced risk management services such as the DRS, which provide an additional layer to preventing losses and mitigating risks in their operations in China.”

Written by

Oona Seppä, If