RenBao Tech Files IPO Prospectus Targeting China's 400-Million Blue-Collar Workforce with Tailored Commercial Insurance Solutions
Blue-collar workers refer to wage earners whose work is primarily manual labor, such as general industrial and mining workers, agricultural workers, construction workers, dockworkers, and warehouse administrators. The term "new blue-collar workers" refers to grassroots workers who live and work in first- and second-tier cities and contribute to the daily functioning of urban life. This group includes individuals in sales, security, logistics, and other occupations, and also encompasses some entry-level white-collar workers.
Given the nature of their work, blue-collar workers face numerous challenges in areas such as employment and social security.
First, blue-collar and new blue-collar workers are primarily employed in labor-intensive enterprises; this population is large in size, operates in high-risk industries, and is characterized by high labor intensity and significant mobility. Second, the overall educational and cultural attainment of blue-collar workers is relatively low, hindering their ability to accurately articulate their true needs. Third, blue-collar workers differ from typical white-collar workers in terms of the platforms they use to access information, their methods of receiving and providing feedback, and their consumption levels and preferences; consequently, they often lack adequate awareness of personal protection and insurance. Meanwhile, social security coverage for blue-collar workers remains limited, and insurance companies still need to improve their product offerings.
According to publicly available data from the National Bureau of Statistics, among China’s 900 million-strong labor force, there are nearly 200 million white-collar workers and approximately 400 million blue-collar workers. Of the 400 million blue-collar workers, migrant workers account for 274 million, manufacturing blue-collar workers number around 100 million, construction blue-collar workers range between 50 million and 80 million, and service-sector blue-collar workers total approximately 120 million.
Chen Junyi, founder of Shanghai Renbao Information Technology Co., Ltd. (hereinafter referred to as “Renbao Tech”), believes that blue-collar and new blue-collar workers have rigid demand for insurance. However, their needs have not received sufficient attention from the market, and few companies genuinely study the underlying factors behind these needs, such as individual career trajectories of blue-collar employees or subsequent family-related conversions.
“With the booming development of the manufacturing, construction, and service sectors, the blue-collar workforce continues to expand. There are approximately 400 million blue-collar and new blue-collar workers across China. Whether in terms of risk aversion, benefits, healthcare, or elderly care, the demand in the blue-collar market is at least at the hundred-million level,” said Chen Junyi.
“Uniquely distinctive” is how Chen Junyi describes his past work experience. After dedicating ten years to the human resources services industry, he has embarked on a new journey by crossing over into the internet insurance sector.
Chen Junyi’s experience in the human resources industry allowed him to engage closely with labor-intensive worker groups. “Their primary safety nets are mainly human resources firms, labor dispatch agencies, and other flexible staffing platforms,” Chen told VCBeat. Meanwhile, his background in the insurance industry helped him identify which insurance products are better suited for blue-collar workers. “They do not demand highly refined insurance service quality; instead, they prioritize whether coverage exists or not, as well as cost-effectiveness.”
Chen Junyi noted that, in light of national policies and shifts in the economic environment, the large demographic of blue-collar workers has certain needs for risk control and enhanced personal benefits. However, in service sectors such as human resources and even internet insurance, white-collar workers remain the primary focus of most service providers. In fact, while the wages of blue-collar and “new blue-collar” workers are now on par with those of some white-collar professionals, their needs differ significantly.
Where there is demand, there is opportunity. Thus, Renbao Technology was founded in Shanghai on November 22, 2018. The founding team of Renbao Technology boasts a diverse composition, encompassing professionals specializing in human resources, internet insurance, actuarial science, risk control management, and product service sales.
Why choose this particular timing to launch the venture? Chen Junyi explained that by 2018, the underlying logic and application scenarios of the internet insurance industry had become increasingly clear. Furthermore, the Central Committee of the Communist Party of China issued the Plan for Deepening the Reform of Party and State Institutions, which proposed that “to improve the efficiency of social insurance fund collection and administration, various social insurance premiums—including basic old-age insurance, basic medical insurance, and unemployment insurance—would be uniformly collected by the tax authorities.” In the aftermath, the entire labor-intensive sector, or what is often referred to as the blue-collar market, underwent significant changes, prompting enterprises to optimize their costs and internal structures.
From Chen Junyi’s perspective, there are essentially two approaches for enterprises to optimize their operations. One approach involves addressing internal practical needs by adjusting personnel structures, compensation frameworks, and employment models. The other entails transforming traditional employment patterns by facilitating flexible work arrangements for the workforce and expanding job channels. As companies implement these measures, corresponding changes have occurred in labor relations, risk management, and welfare coverage for blue-collar workers.
Renbao Technology provides employer's liability insurance, accident insurance, critical illness insurance and other medical-related welfare programs, as well as risk control services.
Chen Junyi explained that the occupational risks faced by blue-collar workers are often determined by the nature of their wages, work environments, and job responsibilities. First, Renbao Technology conducts a detailed analysis of the age structure, risk scenarios, family circumstances, and anticipated welfare needs of different worker groups. It then conveys these groups’ demands to insurance companies and collaborates with them to optimize and comprehensively configure insurance solutions.
Taking food and beverage services and cleaning work as examples. The age of food and beverage service personnel is mainly distributed in the 30-40 age group, while most of the cleaners are over 45 years old. Different working scenarios mean different potential dangers, and different ages represent different probabilities of injury or disease and different treatment needs. Therefore, the risk control and product configuration services of the two are also different.
In fact, blue-collar and new blue-collar workers enjoy limited social security benefits beyond their salaries. Coupled with a lack of insurance awareness, they have an unclear understanding of risk mitigation. Chen Junyi stated that precisely because the consumer market (C-end) has not yet demonstrated clear demand for insurance products or defined purchasing preferences, Renbao Technology aims to drive conversion through the business sector (B-end). Consequently, Renbao Technology’s services are currently available exclusively to enterprise clients.
“Current business expansion strategies encompass both online platforms and offline services, with offline services increasingly transitioning to the digital realm,” Chen Junyi told VCBeat. The company is collaborating with insurance platforms to develop and file corresponding insurance product plans, while exploring initiatives for online platform development and user conversion. “Renbao Technology is currently focused on identifying appropriate traffic entry points within the B2B sector.”
Currently, Renbao Technology has engaged with human resources and labor service enterprises through channels such as its established customer base and forum salons, and has reached cooperation agreements with over one hundred large-scale human resources service enterprises and platforms, as well as several insurance companies.
Next, Renbao Technology will focus its efforts on two fronts. First, by engaging with more platforms that serve blue-collar workers, it aims to create a clustering effect on its own platform and accurately identify the diverse needs of this demographic. Second, in collaboration with insurance companies, it will refine and upgrade its offerings to launch personalized blue-collar insurance products tailored to different scenarios, job types, family backgrounds, and age groups.
Currently, Renbao Information Technology is seeking a new round of financing to optimize its products and recruit professional talent. Interested institutions please contact VCBeat’s investment assistant, Xiao Yun: DongMai_Investent