Waterdrop Inc.'s AI-Powered Innovation Case Selected by Harvard Business School

Waterdrop Inc.'s Business Innovation Case Recognized by Harvard Business School



Waterdrop Inc. (NYSE: WDH) has achieved a significant milestone by having its innovative business case, titled "Waterdrop: AI-Powered Insurance and Healthcare," included in the esteemed Harvard Business School (HBS) Case Collection. This recognition highlights how Waterdrop employs cutting-edge AI technologies to navigate the evolving insurance and healthcare landscape with strategic innovation and transformation.

A Comprehensive Study on Technological Impact


The case study, developed by Professor Li Qi from the School of Management and Economics at The Chinese University of Hong Kong (Shenzhen), underscores Waterdrop's commitment to fostering a diversified health protection ecosystem. This initiative not only enhances operational efficiency but also balances social responsibilities with commercial viability. Waterdrop serves as a replicable model, showcasing a “China solution” for the global insurtech industry's development.

Established as a gold standard in global teaching cases, the HBS Case Collection is renowned for its rigorous selection processes, covering paramount aspects such as strategic management, organizational behavior, and digital transformation. This collection serves as an essential resource for corporate research and business education worldwide.

Waterdrop: A Leader in Insurtech


In his remarks, Waterdrop’s founder and CEO, Shen Peng, noted that recognition by HBS validates their unwavering dedication to leveraging technology for the public good. Since its inception, Waterdrop has been instrumental in assisting families facing medical challenges through its platforms like Waterdrop Medical Crowdfunding and promoting awareness about critical health insurance offerings via Waterdrop Insurance Marketplace.

Over the last nine years, Waterdrop has made strides to democratize access to insurance and healthcare services using technology. A striking example of their impact is the Waterdrop Medical Crowdfunding platform, which facilitates an online medical fundraising campaign every 53 seconds. This initiative has garnered support for over 3.47 million patients, demonstrating the platform's social significance and earning accolades from the Ministry of Civil Affairs of the People’s Republic of China.

The Waterdrop Insurance Marketplace stands out for its technological innovation, offering over 1,000 inclusive and affordable insurance products tailored specifically for pre-existing conditions, senior citizens, and expectant mothers. The marketplace has successfully catered to over 38,000 families, achieving a customer satisfaction rate exceeding 95%.

Harnessing AI for Operational Efficiency


The HBS case illuminates how Waterdrop's AI integration across its services has resulted in remarkable operational efficiencies. For instance, E-Find Patient Recruitment has realized a 45% enhancement in patient enrollment efficiency thanks to comprehensive data-driven strategies. Moreover, robust collaborations have been established with 80% of the world's top pharmaceutical companies, emphasizing Waterdrop’s pivotal role in the healthcare sector.

In a bid to elevate product and service offerings, Waterdrop has dedicated an annual R&D investment of approximately 300 million yuan (about $42 million), resulting in the development of a robust AI application framework for insurance scenarios, supported by over 100 technology patents.

Waterdrop’s aggressive “All in AI” strategy is anticipated to unlock new growth avenues, as evidenced by the company’s 120% surge in net profit attributable to shareholders a year earlier. Implementing a proprietary large language model (LLM) known as the Waterdrop Guardian AI Insurance Expert, the company effectively streamlines end-to-end processes, from sales and customer service to underwriting and quality control.

The Guardian AI has achieved significant operational outcomes: it provides sales support and process optimization while engaging with users for up to 50 minutes per session and delivering prompt responses. This efficiency surpasses that of entry-level human agents, showcasing the transformative potential of automation in customer interactions.

Further enhancing service quality, Waterdrop introduced Baoxiaohui, an AI-driven virtual assistant designed to assist clients with policy inquiries, management, and product-related questions. This virtual assistant utilizes advanced LLM capabilities to understand user emotions and deliver real-time responses, aiming to cut case escalation rates in half while improving service efficiency by a similar margin.

Conclusion


Waterdrop's inclusion in the Harvard Business School Case Collection signifies the considerable research value of its innovative business model that amalgamates AI with insurance and healthcare. As CEO Shen expressed, the essence of their technological advancement is in harnessing efficiency and growth potential to translate socially conscious efforts into actionable, sustainable solutions that generate meaningful user value.

For additional information about Waterdrop Inc., please visit Waterdrop Inc..

Topics Financial Services & Investing)

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