The Analysis of Online Insurance Investment Strategy Based on Duopoly Game Model

Online insurance is the tendency of insurance marketing method. Currently, the on-line insurance is still in the primary stage in China, as an oligopoly market, investment strategies of the leading insurance companies are the major factors that affecting the development of on-line insurance. In this paper, a duopoly game model will be established to analyze how the on-line insurance investment strategy of insurance company would be affected by the potential customers scale and maturity of related technologies. The analysis shows that optimal response strategy for both insurances companies is keeping a low level of investment in on-line business no matter what their competitor's decision is. Once the scale of potential market and technical maturity reached a critical level, their investment in on-line insurance would increase rapidly. These conclusions point out the restriction and future trend of domestic on-line insurance.