(CapitalWatch, Jan. 7, New York) In 2020, the Chinese insurance market ranked second, with 10.5% of the global premiums, according to a report by Swiss Re. Recent research by Bain & Co. estimated that by 2030, China's insurers will drive more than a quarter of global premium growth. A number of growth factors have made the market attractive for multinational investors, while established local firms now command 90% of the market. Among these providers is Huize Holding Ltd. (Nasdaq: HUIZ), one of China's leading digital platforms focusing on new generation consumers and offering customized insurance products.
This week, Huize announced it has partnered with Guofu Life Insurance Co. Ltd., a nationwide life insurance provider, on a new product launch. The two have agreed to develop a critical illness insurance product iteration in the Darwin series called "Darwin Critical Care No. 6".
This new product offers extensive coverage for 110 critical illnesses, 25 moderate illnesses, 50 mild illnesses, and coverage reinstatement benefits after the first claim of critical illness until age 60.
The "Darwin Critical Care No. 6" also offers a comprehensive range of optional protection benefits, including critical illness benefits of up to 100% of the insured amount, the benefit of "unlimited number of claims" for severe malignant tumors upon meeting specified requirements as detailed in the insurance clauses, and other optional benefits including death and total disability benefits, as well as supplemental coverage for severe malignant tumors and specific cardiovascular diseases, which are becoming increasingly common among younger-aged adults.
Huize's chairman and CEO, Cunjun Ma, noted the new product demonstrates the company's digital capabilities in deploying deep customer insights to co-develop customized insurance products with key partners.
According to Huize's latest financial results, it has partnered with 102 insurer partners representing a substantial portion of all licensed insurance companies in China and has cumulatively connected about 7.3 million insurance clients with more than 61 million insured as of September 2021. Tailor-made products contributed to nearly half of Huize's total gross written premiums in the third quarter of 2021.
Ma said in the statement on Wednesday, "We believe there is substantial room for greater demand for critical illness coverage, and we will continue to explore and develop more innovative products to meet the evolving protection needs of our users."
In its recent report, Bain noted that Asia-Pacific insurance consumers are increasingly receptive to new ideas and players. It also pointed to urbanization, growth of the middle class, longer lifespan, and aging population being the top growth drivers for China's insurance market.
Meanwhile, the insurtech space is also enjoying strong interest from VCs and overseas players. At the same time, China's market is difficult for new players' entry as it has distinct characteristics and needs. That's why the few established players like Huize are acting as consolidators in the industry – and doing their best at providing tailored insurance products.
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