Pinghe Renjia Files IPO Prospectus: Pioneering an Integrated Health Insurance Platform for High-Net-Worth Individuals in China
In December 2019, the newly revised Administrative Measures for Health Insurance officially came into effect. The new Measures encourage insurance companies to integrate health insurance products with health management services to mitigate health risks and reduce disease-related losses.
According to the report “Building Health Management Capabilities to Break Through the Challenges of Health Insurance” released by Boston Consulting Group (BCG), China’s original premium income for health insurance grew rapidly from RMB 69.2 billion in 2011 to RMB 706.6 billion in 2019, representing a compound annual growth rate (CAGR) of 34%, significantly higher than the average annual growth rates of 13% for life insurance and 12% for property insurance during the same period.
Driven by the dual forces of policy support and the healthcare consumer market, health insurance has become the fastest-growing segment within the insurance industry.
Breaking Through the Multi-Billion Health Insurance Blue Ocean: Differentiated Competition Is Key
Beijing Pinghe Renjia Health Technology Service Co., Ltd. (hereinafter referred to as “Pinghe Renjia”) was established in August 2018. It is a specialized company focusing on health management and third-party administration (TPA) services for medical insurance. Centered on its core service philosophy of “family, lineage, and family enterprise,” Pinghe Renjia effectively integrates its proprietary medical resources with existing external medical resources into a closed-loop system, thereby meeting the high-quality demands for healthcare and services from high-net-worth clients.
“Leave professional matters to professionals.” This is a statement made by Ms. Liu Shubin, CEO and Co-founder of Pinghe Renjia.
Time goes back to 1988. At that time, Ms. Liu Shubin had just graduated from the Department of Nursing at Capital Medical University and was assigned to work as a healthcare nurse in the VIP ward of Beijing Hospital. More than two years of nursing work enabled Ms. Liu Shubin to understand the importance of high-end nursing services.
Later, Ms. Liu Shubin transitioned to the insurance industry, joining the People’s Insurance Company of China (PICC). Around the year 2000, the nascent form of high-end medical insurance began to emerge in China, and following the 2008 Olympic Games, this sector rapidly developed within the domestic market.
By chance, PICC (People’s Insurance Company of China) launched a high-end medical insurance program for foreign experts during the Beijing Olympic Games. Leveraging her professional background in healthcare and her experience in the insurance industry, Ms. Liu Shubin was tasked with spearheading this initiative. This experience deepened her understanding of the medical insurance needs of high-net-worth individuals.
In 2008, Ms. Liu Shubin was assigned to Jiaping Medical to oversee insurance operations. As one of the earliest companies in China to implement the Health Maintenance Organization (HMO) model, it focused on providing comprehensive family physician services and holistic healthcare solutions for elite individuals and corporate groups. It was also here that Ms. Liu Shubin met Mr. Wang Zhifeng, another co-founder of Pinghe Renjia.
In the following years, Ms. Liu Shubin joined the Beijing Medical Doctor Association, where she gained experience in family medicine; she co-founded Yijiafu, but ultimately had to withdraw due to differing visions with her partners; she then established Ruiren Health, which showed promising progress but encountered equity disputes stemming from a lack of expertise in fundraising.
Ms. Liu Shubin remarked, “For decades, I have consistently maintained my reflections on the field of healthcare · services · payment.”
In 2018, after years of deep engagement in the high-end medical insurance sector and drawing on her experience from two previous entrepreneurial ventures, she finally found a viable path and co-founded Pinghe Renjia with Mr. Wang Zhifeng, a company dedicated to providing health insurance services to high-net-worth individuals.
Prior to founding Pinghe Renjia, Mr. Wang Zhifeng had nearly 20 years of experience in the insurance and health management sectors, with extensive expertise in insurance claims adjudication and the operation of medical insurance products. Currently, he is primarily responsible for the overall operations and promotion of Pinghe Renjia.
The two founders’ extensive industry experience and strong collaborative synergy have injected momentum into the positive development of Pinghe Renjia.
Founders of Pinghe Renjia: Liu Shubin (left), Wang Zhifeng (right)
With the upgrading of national healthcare consumption, demand for premium medical services is burgeoning.
The “2020 China High-Net-Worth Investment Report” shows that among those who choose to purchase commercial medical insurance, the average annual household premium is RMB 59,000, with 16% paying more than RMB 100,000, and ultra-high-net-worth households paying an average of RMB 162,000. This clearly demonstrates the significant consumption potential of high-net-worth individuals in the medical insurance market.
Pinghe Renjia believes that, given the rising demand for medical services among high-net-worth individuals in China, there is an urgent need in the industry for health insurance companies capable of providing mature and comprehensive solutions to this demographic. Consequently, since its inception, Pinghe Renjia has precisely positioned its current target customer base as “high-net-worth individuals.”
Pinghe Renjia's Current Target Customer Base
Ms. Liu Shubin, Founder and CEO, stated, “High-net-worth individuals increasingly seek refined processes and diversified service offerings in their medical care. We have not broadened our target demographic to include lower-tier segments, as our primary objective is not merely to expand our client base numerically, but to genuinely enhance customer experience. By integrating our comprehensive medical services, insurance solutions, and health management programs, we aim to deliver the most tangible and satisfying experience to our clients.”
How can medical services, insurance services, and health management services be integrated to enhance customer experience?
Health Maintenance Organizations (HMOs) represent a model of health insurance enterprise development that originated in the United States. By simultaneously providing health management and health insurance services, HMOs coordinate all medical resources to avoid unnecessary or inappropriate medical care, ultimately achieving the goal of controlling healthcare costs. Kaiser Permanente is the benchmark company for the HMO model in the U.S.
Constrained by the unique circumstances of China’s basic medical insurance, commercial health insurance, and healthcare resources, Pinghe Renjia has opted to localize and adapt the overseas HMO (Health Maintenance Organization) health management model.
Medical services constitute the core of commercial insurance. The quality of service delivery not only affects insurers’ claims costs but also influences customer acquisition and retention. Furthermore, health management is a crucial component in building an integrated healthcare service ecosystem.
“Healthcare services are not something that can be resolved by simply formulating a plan; instead, it is essential to empathize with customers and consider multiple dimensions, including health maintenance, medical consultation and treatment, diet and exercise, daily care, elderly care and wellness, as well as insurance claims,” said Ms. Liu Shubin.
At this stage, under the policy framework that allows physicians to practice at multiple locations, Pinghe Renjia has contracted with dozens of professional doctors to establish a highly skilled family physician team dedicated to providing precise, tracked care services. Furthermore, Pinghe Renjia collaborates with numerous public hospitals and clinics to offer broader access to medical and nursing resources.
Upon joining Pinghe Renjia, members enjoy comprehensive medical care coverage: minor health issues are managed by family doctors, while serious conditions are accurately referred to Grade 3A hospitals. From establishing health records and providing appointment accompaniment to delivering follow-up services, Pinghe Renjia is involved in every aspect of the customer’s medical treatment and nursing care.
Partnering insurance companies provide reasonable, customized solutions based on each customer’s specific circumstances, set cost-containment targets, and curb excessive medical care to ensure appropriate healthcare utilization.
Pinghe Renjia integrates patients, doctors, clinics, hospitals, and insurance institutions to establish a closed-loop healthcare service ecosystem grounded in a shared value system, thereby providing customers with one-stop, comprehensive medical health and insurance services.
“For most people, falling ill means having no choice but to rush to the hospital. This is especially true when trying to secure an appointment with a reputable specialist; even if reluctant, patients feel compelled to brave long queues at top-tier Grade 3A hospitals. A single hospital visit can consume an entire day, while incomprehensible medical reports and the difficulty of booking specialist appointments are significant sources of stress. We aim to address these pain points for our customers from a professional perspective,” mentioned Ms. Liu Shubin, highlighting that Pinghe Renjia deeply understands user needs.
How can high-quality medical resources be precisely delivered to patients in need? How can patients receive the most appropriate health management? Pinghe Renjia offers a range of personalized, customized services.
Save Time for Busy Clients
To facilitate a smoother healthcare experience for clients, Pinghe Renjia schedules appointments with the most suitable medical institutions and physicians based on individual preferences. Clients need only arrive at the hospital at the appointed time, where professional patient escorts will guide them through the consultation process. After the visit, dedicated staff will handle all settlement procedures.
Developing a Health Plan for the Family
Pinghe Renjia’s private family physicians collect information on clients’ past medical history, family history, surgical history, medications, diet, exercise, sleep, and allergies to establish a comprehensive database. Based on each client’s baseline health status, the family physician develops a 52-week health management plan.
On-Demand Health Consultation Solutions
To address customer inquiries in a timely manner, Pinghe Renjia has established online service groups. Customers may raise questions at any time within these groups regarding topics such as diagnostic report interpretation, daily medical and nursing consultations, and requests for home-based services. Physicians will respond promptly through various communication channels, including voice messages, text, and phone calls, to provide solutions.
Since its establishment in 2018, Pinghe Renjia has served hundreds of high-net-worth clients, including prominent Chinese entrepreneurs, A-list film and television stars, overseas Chinese, and foreign nationals. By the end of 2021, Pinghe Renjia is projected to reach a client base of 500 and achieve annual revenue of RMB 40 million.
At this stage, Pinghe Renjia plans to raise an angel round of financing, which will be used for the continuous development of its system, expansion of brand promotion, operation of medical services, and recruitment of professional talent.