ZhongAn Online Property and Casualty Insurance recorded immense premium growth in its motor insurance business, reaching 70% of its entire 2017 revenue in January alone.
Last month, ZhongAn’s motor insurance premiums exceeded RMB56 million (US$8.9 million), compared to RMB84 million (US$13.34 million) for the whole of 2017.
According to the Hong Kong-listed online-only insurer, it was able to harness its big data and artificial intelligence to create an online platform and build customer loyalty.
ZhongAn’s Bao Biao Car Insurance business, which was launched in 2015 in cooperation with
Ping An Insurance, has experienced rapid growth in premiums, from RMB17,019 in its first year to RMB3.5 million in 2016, reported
South China Morning Post.
“We have adjusted our strategy in online car insurance and it has played out well,” said Chen Jin, ZhongAn’s chief executive officer, at a Beijing press conference. He added that the platform it designed is “inclusive”, as it includes automakers, dealers, aftersales service providers, car rental firms, and financial institutions that offer car loans.
“Our purpose is to build user loyalty through better user experience,” Chen said.
Meanwhile, Wang Yu, head of ZhongAn’s motor insurance business, revealed that the increase in revenue was partly due to its expansion push in mainland China. From six provinces in 2016, ZhongAn has obtained licences in a total of 36 provinces and regions in China by September 2017.
In the future, ZhongAn is seeking to integrate online and offline resources through its partnership with Ping An Insurance, Wang said.
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