Advantages and Disadvantages of Internet Insurance


In recent years, the insurance industry also transforms itself into Internet business and the major traditional insurance companies have expanded their online insurance business.

Internet insurance is no longer a newfangled gadget, but many of us may still wonder what advantages and disadvantages Internet insurance have comparing to traditional insurance?



1. Rich insurance products

We customers can view various products of each insurance company on the Internet for ourselves to choose, and we can always decide the insurance that is the most suitable for us according to our needs.

2. Transparent product information

We can compare the products of various insurance companies according to their contents and terms published by the products, compare and select the products with more comprehensive protection and lower premium.

It effectively helps us avoid the situation of not understating much knowledge and can only refer to the insurance salesperson’s words, which led to the selection of some products with low cost performance or even incomplete protection.


3. Saving time cost

In the traditional mode of insurance marketing, the insurer and the insurance agent usually have to arrange a time and place for negotiation, which requires repeated discussion before making a plan. The entire insurance process requires the agent to follow up and this can cost a lot of time.

Internet insurance, however, allows the insurers to purchase online directly once they have made up their minds. When an insurance claim is made, the submission of information to the insurance company can be as simple as a click when you make the uploaded, instead of going all the way to the relevant outlets to apply, which is more convenient and saves a lot more time. 


1. Need basic knowledge on insurance:

There are more and more Internet insurance products on the market. Later, they may find that this insurance coverage does not suffice when they need to settle insurance claims. That is why Internet insurance has requirements on profound knowledge on this field. In order to avoid such a situation, we need to have a certain understanding of insurance, so that we can look through the terms of the insurance contract to distinguish which insurance coverage is suitable for our own choice.


2. Easily frauded

There are many sales platforms for Internet insurance. Some frauds can easily speculate and pretend to be insurance institutions. They use fake insurance platforms to make up insurance products and cheat insurers’ assets with high “returns”.

Therefore, it is essential that we should consult professionals or purchase products from proper insurance platforms to ensure our legitimate rights and interests, in prevention of being cheated.