BosTec Launches China's First Digital Therapeutics-Integrated Insurance Product 'BrainCare' for Cognitive Disorder Prevention

The Business Model of Digital Therapeutics Is Becoming Increasingly Clear.

Depending on the payer, digital therapeutics (DTx) feature five business models: 2C (consumer), 2H (hospital), 2B (enterprise), 2G (government), and 2I (insurance). In the United States, where DTx emerged earlier, companies that had established employer- and insurance-based payment models all achieved a doubling of their revenue growth rates in 2020. However, few pure-play DTx companies have realized scaled revenues.

Since the beginning of this year, China’s digital therapeutics industry has also witnessed a surge in development; however, who will “foot the bill” for the future of digital therapeutics remains a pressing challenge for domestic innovative enterprises.

On October 14, 2021, Bosthen Technology held a press conference themed “Transformation · Integration” at the Dachuangzhi Park in Yangpu District, Shanghai. At the event, the company announced its partnership with ZhongAn Insurance and Qianhai Reinsurance to launch “Brain Worry-Free,” the first and only cognitive disorder protection insurance product in China, thereby delivering the country’s inaugural case of digital therapeutic insurance coverage.

Dementia, also known as Alzheimer’s disease and related disorders, is a neurodegenerative condition. According to the latest census data and reports from The Lancet, China has approximately 270 million people aged 60 and above, with a dementia prevalence of around 6% and a mild cognitive impairment (MCI) prevalence of approximately 16% in this population.

To help middle-aged and older adults at risk of cognitive decline improve their brain health and delay the onset of dementia, Bostentech, in collaboration with domestic experts in the field of dementia, has leveraged years of technological application and iteration to develop an AI-powered intelligent tool for assessing the risk of cognitive impairment, along with corresponding digital intervention and training products.

As the saying goes, “The superior physician treats disease before it arises,” emphasizing prevention. Similarly, the goal of insurance is to avoid claims altogether. Both share a common essence: prevention. In China, where population aging is accelerating, dementia—primarily Alzheimer’s disease—lacks effective curative treatments, and early symptoms are often overlooked, prevention has become increasingly critical. However, in the digital age, standalone preventive technologies run counter to human nature; broad coverage through external support mechanisms is necessary to achieve positive outcomes.

To address this challenge, Bosteng Technology has pioneered the integration of digital therapeutics with commercial insurance, enabling a transition from “managed care” to “preventive care.” This approach provides a one-stop solution for the middle-aged and elderly population, meeting customer needs and filling a gap in the market.

What Is “Preventive Healthcare”?

Image source: Bositeng Technology, Mu Zhe Shuo WeChat Official Account

From the user’s perspective, neurodegenerative diseases are not a definitive disease state but rather a progressively evolving disease process. For high-risk populations, the “BrainWorry-Free” cognitive disorder protection insurance offers affordable premiums and comprehensive coverage, with an upper age limit for insured individuals as high as 75 years.

Starting with early screening to raise users’ anxiety and awareness of disease, and then providing them with a series of Bostan intervention training courses along with insurance as a safety net, is an effective approach to disease prevention.

Furthermore, from the perspective of insurance companies, enterprises are most eager to establish high-frequency interactions with customers from the outset. If such interactions can be facilitated through digital screening, enabling continuous assessment of customers’ health status throughout the processes of customer acquisition, retention, and renewal, this will enhance insurers’ capabilities and efficiency in data collection and underwriting.

The newly launched “Brain Worry-Free” supports intelligent underwriting, allowing customers to determine their eligibility for coverage after completing a three-minute self-assessment, marking an innovative integration of insurance and healthcare.

It is evident that in the practice of preventive healthcare, “out-of-pocket payment” and “insurance coverage” complement each other, creating a virtuous cycle. “For digital therapeutics platforms or insurance companies, this represents an endless frontier. Within any category of digital therapeutics, starting from early screening and extending to interventional treatment and disease management, a closed-loop system can be established, giving rise to a market with unlimited expansion potential. This is my understanding of preventive healthcare,” said Qiu Yan, Partner at Bossten Technology.

Merely having the support of core concepts is far from sufficient; what is more critical is how to achieve deep integration between digital therapeutics and insurance innovation. To this end, Bositen Technology has proposed a practical pathway characterized by “Three-Point Embedding and Five-Level Progression.”

In the design of digital therapeutics insurance products, Bostentech has adopted an embedded insurance model characterized by “providing tools for underwriting, data for actuarial analysis, and services for claims settlement.”

First, the Bossten Technology Cognitive Impairment Risk Assessment System can quantify the health status of users' brains, serving as a powerful tool for insurance companies to determine whether users meet the underwriting criteria.

Furthermore, insurance companies often rely on specific historical data when developing medical insurance products and determining premiums, yet real-world data remains scarce. The vast amount of data accumulated through Bostern Technology’s Cognitive Impairment Risk Assessment System will enable dynamic pricing for insurance actuarial practices.

“BrainWorry-Free” enables policyholders to commence their brain health training programs immediately upon policy inception. By aligning the interests of insurers and insureds through product design, it paves the way for incorporating intervention services into insurance claims settlements. This approach delivers a mutually beneficial insurance service model and represents a meaningful attempt at innovating the future insurance market.

Regarding the market application of digital therapeutics insurance, Qiu Yan introduced Bossteng Technology’s five-tier progressive strategy: “activation, user acquisition, benefits, single-disease management, and inclusive coverage.”

User activation and acquisition constitute the first step in early screening for customer acquisition in preventive healthcare. The "Brain Training" mini-program launched by Bositen Technology on Alipay had surpassed 10 million users by September, with 300,000 daily active users and a 30% monthly retention rate.

This September, Ping An Property & Casualty Insurance’s two major platforms—the Ping An Good Car Owner App and the Ping An Good Life App—simultaneously launched Bossteng’s “Memory Assessment” service. Serving as one-stop service platforms for auto insurance and non-auto insurance customers, respectively, these apps now offer both free daily “gamified training” and paid options, including a “Professional Assessment” and “At-Home Training Courses.”

Image source: Ping An Good Car Owner App, Ping An Good Life App

On World Alzheimer’s Day, September 21, Bostech Technology, in collaboration with the CPIC Blue Public Welfare Foundation, simultaneously launched a three-minute “Brain Power Challenge” on their WeChat official accounts, “Bostech Brain Health” and “CPIC Blue Public Welfare.” This gamified initiative aimed to promote public science education and demonstrate care for the elderly. Within just two days of its launch, the number of individuals screened exceeded tens of thousands.

In addition, the company has partnered with Dajia Life Insurance and China Minsheng Bank to embed its screening tools, leveraging bank relationship managers and insurance agents to reach existing customers and attract new ones.

Image source: “CPIC Blue Public Welfare” WeChat Official Account

The third layer is health benefits. Although health benefits are diverse and widespread in the market, those involving elderly care benefits are extremely rare.

“Elderly care benefits are currently in a state of extreme scarcity. Through our partnership with Munich Re, these benefits are procured and distributed to all of its direct insurance companies, resulting in a monthly distribution volume of approximately 800,000 policies. This constitutes our benefits segment. The fourth layer is single-disease insurance; our ‘Brain Worry-Free’ cognitive disorder protection insurance represents our latest innovative practice,” introduced Qiu Yan.

Image source: “Bosteng Brain Health” WeChat Official Account

Qiu Yan added, “The fifth level of advancement represents the state we aspire to achieve in the future: developing inclusive products that combine medical-grade qualifications with gamified screening. As is well known, current Huiminbao plans are inclusive medical reimbursement products backed by the government and underwritten or co-underwritten by multiple insurers within individual cities. Such inclusive insurance coverage aims to reach and benefit a broad population through early screening services. Indeed, some city-specific Huiminbao plans already cover early screening services.”

Underpinned by the accumulated expertise in the “philosophy” and “methodology” of integrating digital therapeutics with insurance product innovation, Bosite Technology’s newly launched “Brain Carefree” Cognitive Disorder Prevention Insurance marks the company’s advancement to its “fourth-tier” strategic level. To achieve further breakthroughs and develop digital therapeutic insurance products at the scale and accessibility of “Huiminbao” (city-specific supplementary medical insurance), continued momentum from the broader industry “trend” will be indispensable.

We look forward to Bostech’s leading practices in the insurance industry opening up new avenues of thought for all, thereby jointly fostering the development of China’s digital therapeutics sector.