The Life and healthcare insurance sectors in China look set to undergo changes as technology emplowers both consumers and insurers. Here’s some news on an open platform launch;
Fanhua Inc. (“Fanhua” or the “Company”) (Nasdaq: FANH), a leading independent financial services provider in China, has announced the official launch of its open platform (the “Open Platform”) aiming to empower independent insurance agencies and agents on the market.
Fanhua’s Open Platform will provide various market participants with access to a standardized compliance framework, a full spectrum of products and services on the market, leading technology and digital operation capabilities, professional training and services, and capital support. Fanhua may also selectively invest in or acquire qualified intermediary companies to strengthen business quality control through equity ties.
Mr. Hu Yinan, Chairman and CEO of Fanhua, commented on the launch of the Open Platform, “China’s life insurance industry is at a stage of profound transformation. While the traditional pyramid structure of life insurance sales force is falling apart, life insurance sales teams are transforming to become more distinctly professional, career-based and elite, and are structured in a more flattened, small, disperse and personalized manner. As such, a large number of fragmented sales organizations and independent agents are in need of a public professional platform that can help them ensure compliance, achieve professional growth, offer whole life insurance services to customers, and improve business efficiency.”
“We believe what will happen next in the individual life insurance agency business in China is that while sales organizations are becoming increasingly fragmented, the market of supporting platforms will become increasingly concentrated.”
FUTURE EXPANSION PLANS, ACQUISITIONS etc.
“Fanhua has been adhering to the ‘professional back office platform + individual entrepreneurship’ operation model since its inception. After 24 years of development, we have forged a strong open platform with comprehensive infrastructure. The open platform has been empowering our agents in their professional development and career progression, demonstrated by significant improvement in the number and productivity of our elite agents. We therefore believe it is high time to make the platform open to the whole industry.”
“Following the acquisition of Zhongrong Smart Finance Technology Information Technology Co., Ltd. (“Zhongrong”), Fanhua aims to invest in or acquire 20-30 small and medium-sized insurance agencies within the next couple of years. Through the integration with Zhongrong’s managing general agency platform, we expect to connect with 300-500 small and medium-sized insurance agencies to empower various parties in the industry, contributing to the transformation and long-term sustainable, high-quality development of the industry.”