The Chinese insurance market is on path to becoming heavily automated. This exponential change to the market is thanks to the launch of a new insurance scheme being utilized by one of Jack Ma’s many business ventures.
With the changing socio-eco levels and the increased awareness of health care, China is set to become the world’s largest insurance market in a little over ten years.
Seven months after its launch, a new insurer, Xiang Hu Bao now provides services about 65 million clients. Clients can pay very small amounts in premiums which are pooled to help those suffering from various types of illnesses. At the current date, 49 critically ill clients have been compensated.
The method of operation is as innovative as it is heavily dependent on technology, opposed to traditional insurance methods that are dependent on employees to communicate with clients at all stages of the insurance process. With the vast number of China’s population being equipped with smart phones means that over 700 million people can potentially sign up for the service, make their monthly payment, and submit relevant medical documents using their smart phone. Xiang Hu Bao takes a percentage of pay outs. Insurtechs are expected to generate up to $174 billion in premiums by 2020. The ease of use of Xiang Hu Bao makes it an attractive alternative to traditional insurance companies. To advisers as well as clients. The disruptive nature of Xiang Hu Bao could be an indication of the direction the global insurance market is taking. Click here to read more