The 12 months 2021 turned out to a constructive 12 months for China’s insurtech business, the place gigantic demand stems from enhanced standard well being consciousness, rising particular person wealth, and – extra importantly –speedy digitalization. The market has grown persistently; in 2021, the worldwide insurtech enterprise witnessed an all-time excessive of 566 offers and USD 15.4 billion in the quantity raised, exhibiting a rise of 21% and 90% over 2020, respectively, CB Insights mentioned.
In reality, each the funding and transactions have been steadily climbing since 2013, in accordance to Willis Towers Watson, the third-largest insurance coverage dealer in the world. Against this backdrop, the home insurtech market additionally has recorded robust development.
We choose 10 consultant Chinese insurtech firms which have obtained funding in the previous 12 months, and can set out to analyze in this text their excellent capabilities and future prospects.
* All firms are organized in chronological order of financing.
Dowsure
The cross-border e-commerce market obtained appreciable consideration in 2021, and the market phase Dowsure is focusing on has big potential and scale.
Founded in 2016, Dowsure (Chinese: 豆沙包) is the primary home on-line insurance coverage platform designed completely for cross-border e-commerce. By leveraging its competence in huge information, machine studying and blockchain, this six-year-old startup launched a sequence of inclusive monetary merchandise akin to TrustSure, LogiSure, CreditSure, BondSure, SellSure and BuySure, dedicated to higher defending/insulating sellers from dangers and losses.
In 2020, it solid strategic partnerships with eBay, Amazon, Lazada, Rakuten (Japan’s prime on-line retailer) and so forth. According to public sources, Dowsure has already partnered with over 800 retailers of all kinds worldwide, finishing over 10 million transactions.
Moreover, Dowsure has labored with dozens of Chinese banks since 2019 in offering modern lending options for the e-commerce business. It has entered into cooperation with LianLian, PingPong, WorldFirst, Lakala Payment and NetEase since May 2021, and after eight months of working the lending enterprise, the corporate has facilitated greater than CNY 35 billion in GMV for Chinese sellers on the Amazon platform.
With the promising prospects, Dowsure has additionally turn out to be a darling of enterprise capitalists. On February 22, 2022, this Shenzhen-based insurtech startup closed its USD 20 million Series B financing spherical, led by an undisclosed world top-tier strategic investor. Firms akin to VenturesLab, Qianhaiyifang, and present investor Plug & Play China additionally took half in the spherical.
AIX Technology
Aixuan Technology (Chinese: 爱选科技) is an insurer that gives huge information algorithm, actuarial threat management, AI and extra technical options for the modern utility of finance and insurance coverage.
On July 8, 2019, AIX Technology accomplished Series Pre-A funding value CNY 20 million; Fellow Capital, Frees Fund, Ligang Capital, Wisdom Sports (1661:HK) have been the co-investors. One 12 months later, the corporate obtained its Series A+ funding led by Bio Venture; 5Y Capital (beforehand referred to as Morningside Venture Capital) acted as a follow-on investor.
Since its founding in 2017, AIX has been focusing on non-standardized clients – individuals who have continual illnesses like diabetes and hypertension. In reality, these sub-healthy individuals who have lengthy refused to be insured have gotten new targets for insurers in latest years: Waterdrop Inc (WDH: NYSE), Huize (HUIZ: NASDAQ) and a bunch of different on-line insurance coverage platforms have already began to department out into in this comparatively untapped market.
According to China Health Care Association, over 70% of the nation’s inhabitants is in a state of sub-health; and this proportion remains to be on the rise. Beijing tops the listing at 75.30%.
On February 21, 2022, AIX closed its Series A++ funding spherical with Zhuhai Rongqian, a enterprise fund centered on expertise startups inside the healthcare business, Shenghui Investment and undisclosed business traders.
Avo Insurance
Launched in 2019, Avo Insurance (Chinese: 安我保险) is Hong Kong’s first digital licensed basic insurer, which goals to present shoppers with covers particularly tailor-made for situations akin to sports activities, earn a living from home, journey and COVID-19 associated unemployment. With its dad or mum firm Asia Insurance’s backing, Avo is devoted to leveraging superior expertise to additional bridge the massive safety hole that at the moment exists in Hong Kong.
In May 2020, Avo obtained its Series A funding from IBI Tech Fund, an Israeli fund investing in excellent early-stage startups. Later that 12 months, the digital insurer introduced a partnership with Two Sigma Investments, a New York-based hedge fund that promised to present information analytics and expertise assist. In November 2021, Avo obtained Two Sigma’s funding of HKD 260 million.
Shangyong Tech
In August 2021, Shangyong Technology (Chinese: 商涌科技) introduced the completion of its Series C funding spherical value tons of of hundreds of thousands of yuan. This spherical was led by China Merchants Health; one other standard medical funding establishment Marathon Venture Partners additionally poured cash into the deal. FZ Capital acted because the monetary advisor for this spherical.
Founded in 2017, the corporate positions itself as a one-stop threat administration platform for each insurers and shoppers. The firm has beforehand obtained a mixed funding of over CNY 100 million from Matrix Partners China, Qianhai Reinsurance, Gopher Asset Management, CRCM Ventures, Mount Morning Capital, Invention Capital and Cloud Angel Fund.
The firm’s enterprise scope primarily contains pre-risk management and product customization, with its important clever threat management product being “Xinji Baobei” (Chinese: 新机保贝) and a hospital money product that it delivers by way of a medtech app.
At current, the corporate has established partnerships with greater than 70 insurance coverage firms and platforms; it has issued greater than 12 million insurance policies overlaying the underwriting and threat management providers.
17doubao.com
Founded in 2015, 17doubao.com (Chinese: 豆包网) was one of many first insurtech service suppliers in China to launch a SaaS cloud platform. It obtained its Series D funding for almost CNY 100 million in August 2021 from present traders Bojiang Capital and Shangshi Fund; the corporate has raised CNY 235 million in the earlier 5 rounds of financing.
The digital insurer handles information mining, digital SaaS answer, customer support, claims dealing with, middleman administration and worker advantages options. According to 17doubao.com, it has already served about 20 million purchasers with a mixed worth of over CNY 237 million; the variety of contracted establishments and third-party brokers has topped 1,265 and 542, respectively.
In early 2019, 17doubao.com prolonged it attain into the abroad insurance coverage market and in April of the identical 12 months, EasiTech Co., Ltd, its worldwide arm, was formally established in Hong Kong, with town being its bridgehead in the hunt to globalize its operation. EasiTech’s present worldwide consumer base is in Hong Kong and Southeast Asia.
DouBao Digital Cloud, EasiTech and Ignatica – a Hong Kong and Swiss firm backed by US-based SOSV Investment Fund –inked a deal in December 2020 to collectively craft a brand new platform that may faucet the complete potential of the Asia-Pacific area’s burgeoning insurance coverage sector.
Dayu Tech
Founded in September 2015, Dayu Tech (Chinese: 大鱼科技) is an insurtech firm which claims to be the one one that would supply providers to insurers, brokers and likewise clients.
On 19 May 2021, Dayu Tech introduced that it had obtained a Series B funding spherical from Xiaomi Group (1810:HK), a Chinese shopper electronics and good wearables producer. The proceeds might be used for additional expertise improvement and staff enlargement.
Dayu Tech has three important enterprise strains. To begin with, Haibao Platform (Chinese: 海保) is a B2B insurance coverage customization platform designed for tailor-made product options; Jingsuanshi (Chinese: 晶算师) is the biggest home MGA (Managing General Agent) service administration platform, which offers gross sales assist for insurance coverage firms and instruments for insurance coverage brokers to broaden their enterprise; Xinchengbao (Chinese: 心橙保) is a customer-focused consulting platform, providing customers with threat evaluation, personalized insurance coverage suggestion, claims dealing with and different providers.
Yuanbao Insurance
Yuanbao Insurance is a licensed insurance coverage dealer formally in operation since 2020. As of May 2021, the insurance coverage middleman platform had served hundreds of thousands of paid customers in over 90% of cities and areas.
Within only one 12 months of its launch, this “black horse” accomplished a Series C funding to the tune of CNY 1 billion, setting a brand new file in funding quantity for the entire business. This spherical was led by Source Code Capital and likewise backed byCathay Capital and present traders together with Hike Capital, Northern Light Venture Capital, Qiming Venture Partners and SIG Capital. Thriving Capital served because the unique monetary advisor.
Waterdrop Inc (WDH:NYSE)
Waterdrop Inc. (WDH:NYSE) (Chinese: 水滴公司), a Tencent-backed Chinese on-line insurtech firm in addition to a crowdfunding platform, has been a favourite of the capital market since its institution in 2016, finishing six rounds of financing for over CNY 4 billion inside 4 years.
Waterdrop faces challenges on a number of fronts, particularly after the regulatory crackdown on the mutual support business that led to the everlasting shutdown of one among its core operations; the widening losses additionally sparked heightened investor considerations. After a unstable 12 months for Waterdrop and the complete insurtech business, we count on to dive deep into its yearly efficiency report to see if the This autumn 2021 outcomes would finish a 12 months’s ups and downs on a word of relative optimism.
Check out our earlier article about Waterdrop:
As Crackdown Looms, Chinese Insurtech Waterdrop Enters Next Growth Phase
Baozhunniu Insurance
Baozhunniu (Chinese: 保准牛) is an insurance coverage customization platform powered by huge information. The firm utilized a differentiation technique and managed to beat the competitors in the comparatively saturated market, creating merchandise for rising however fragmented scenes, for instance, health, meals supply, sharing economic system and gig work platforms.
It claims to have served greater than 150 million particular person customers in China and 12,000 enterprise clients, together with Missfresh (MF:NASDAQ), Matrix Partners China, and Maimai, China’s largest rival to LinkedIn.
Baozhunniu grabbed its Series C1 financing spherical led by Ally Capital and Huazhi Capital in May 2021. The latter was additionally the Series C investor for Leapstack, an insurtech firm specializing in medical health insurance threat management.
Xiaoyusan
Xiaoyusan (Chinese: 小雨伞) was established in 2013 as a web based insurance coverage aggregator and has been acknowledged by the capital market since its inception. It roped in big-name traders like Sequoia China, Matrix Partners China, Tasly Capital and AV Capital. In March 2021, it obtained a Series C spherical of financing led by Gopher Asset Management for an undisclosed quantity.
It has independently developed numerous AI applied sciences to shorten the decision-making course of for customers and resolve their issues on all fronts. With its energy in expertise and providers, Xiaoyusan has entered into strategic partnerships with over 80 insurers to launch merchandise that higher meet customers’ wants. Its time period life insurance coverage product “Optimus” and one other vital sickness insurance coverage product named “Super Mary” have been as soon as successful in the life insurance coverage market.
According to Xiaoyusan, it dealt with 44,000 claims in 2021, with a complete payout of CNY 210 million, of which the biggest sum was CNY 1.05 million.
Disclaimer: This article’s content material is meant to be used solely for informational and academic functions, and never as funding recommendation. Always do your analysis and take into account your private circumstances earlier than making funding selections. EqualOcean shouldn’t be chargeable for any losses that will come up from counting on the knowledge supplied.