Yilianzhong Establishes Life Insurance Joint Venture to Monetize Healthcare Big Data Amid Upcoming Medical Insurance Settlement Interface Opening

Recently, E-Lianzhong plans to contribute RMB 300 million from its own funds as one of the promoters to participate in the establishment of Haibao Life Insurance Co., Ltd. The proposed life insurance company will have a registered capital of RMB 1.5 billion, with E-Lianzhong holding a 20% equity stake.

It is understood that the business scope of the newly established insurance company includes: ordinary insurance (including life insurance and annuity insurance), health insurance, accidental injury insurance, participating insurance, and universal life insurance; reinsurance for the aforementioned businesses; entrusted pension services; investment of insurance funds as permitted by national laws and regulations; and other businesses approved by the China Insurance Regulatory Commission.

The insurance industry has experienced rapid growth, with the company actively positioning itself in both commercial and social insurance sectors. During the "12th Five-Year Plan" period, China's insurance industry achieved leapfrog development, with a significant enhancement in its overall strength. National premium income grew from RMB 1.3 trillion in 2010 to RMB 2.4 trillion in 2015, representing an average annual growth rate of 13.4%. In the first half of 2016 alone, premium income reached RMB 1.9 trillion, a year-on-year increase of 37.29%. Industry profits rose from RMB 83.7 billion in 2010 to RMB 282.4 billion in 2015, marking a 2.4-fold increase.

China’s insurance market has successively surpassed those of Germany, France, and the United Kingdom, rising from sixth to third place globally. It contributes 26% to the growth of the international insurance market, ranking first worldwide. The organic integration of social medical insurance and commercial health insurance will alleviate fiscal pressures and diversify healthcare coverage, representing a necessary step toward perfecting the healthcare security system.

On November 8, the Ministry of Human Resources and Social Security issued the "Notice on Printing and Distributing the 'Internet + Human Resources and Social Security' 2020 Action Plan," which will open up a directory of 102 applications for social security cards, generally achieving cross-regional cardholder applications, and realizing "one-card universal use" with other public services provided by the government. A human resources and social security payment settlement platform will be built, extensively leveraging cooperative commercial banks, third-party payment platforms, and other payment channels to expand online payment and settlement models for social security cards.

YiLianZhong has issued over 100 million social security cards and medical visit cards nationwide, deployed more than 7,000 self-service terminals, expanded its business coverage to over 20 provinces, and served a population exceeding 300 million. The opening of medical insurance settlement interfaces will drive investment demand in healthcare and social security informatization.

Furthermore, as Yilianzhong rapidly expands its coverage of the public livelihood information service operation platform, it will not only benefit from the projects it undertakes but also gain access to high-quality and effective medical big data traffic from both consumer (C-end) and government (G-end) segments.

Commercial insurance companies serve as a key scenario for the monetization of Yilianzhong's medical big data. By deeply leveraging the company's high-quality big data resources, we provide support services to insurance institutions in designing insurance products, particularly commercial health insurance products.

Leveraging its existing hospital information systems such as PACS, LIS, and RIS, the “Yi Jiu Yi” mobile hospital platform, the “Health Pass” all-in-one card platform, and government-operated public welfare information service platforms built under the Public-Private Partnership (PPP) model, Yilianzhong has acquired comprehensive and effective personal and corporate data, as well as big data in the healthcare sector.

As Yilianzhong conducts in-depth big data mining for government, enterprise, and individual (2G2B2C) users, multiple scenarios—including future insurance, consumer finance, industrial finance, and medical services—will become channels for big data monetization, thereby realizing the 2G2B2C business model.