Health580 and Xiaoyusan Launch Internet-Based Cancer Insurance Partnership

Recently, the mobile health and healthcare platform Health 580 announced that it had formally signed a strategic cooperation agreement with Xiaoyusan Insurance, an online insurance flash-sale platform. Specific insurance products from Xiaoyusan will be integrated into the Health 580 platform. Users who purchase these designated insurance policies will also enjoy discounts on other products offered through the oncology-focused version of the Health 580 platform. For instance, users can access a cancer risk prediction questionnaire service on Health 580, with results interpreted by professional physicians. The covered insurance products include: Health 580–Xiaoyusan Cancer Insurance for Parents, Health 580–Xiaoyusan Critical Illness Insurance for Adults, Health 580–Xiaoyusan Critical Illness Insurance for Children, and Health 580–Xiaoyusan Cancer Insurance for Women.

Yun Peng, founder of Health 580, stated that Health 580 is a platform connecting physicians, healthy individuals, populations at high risk for cancer, and patients. It has established a closed-loop ecosystem in the vertical field of oncology prevention, treatment, and rehabilitation. Always prioritizing health security as the company’s top concern, Health 580’s strategic partnership with Xiaoyusan Insurance Sales Platform aims to provide an additional layer of protection for its users’ health.

It is understood that Xiaoyusan Insurance is a flash-sale platform that leverages internet big data and partners with professional domestic insurance companies to design exclusive insurance products for groups with specific, similar characteristics. Xiaoyusan’s CEO, Guang Yao, and several other co-founders are former Tencent employees, while Chairman Xu Han previously held senior executive positions at multiple financial institutions in Hong Kong.

In fact, insurance is a crucial component of the mobile healthcare ecosystem, and its efficient integration with various stakeholders in this ecosystem is of paramount importance. Previously, pioneers have made attempts in vertical sectors such as chronic disease management and health consultations. Notable precedents include the collaborations between Chunyu Doctor and PICC (People’s Insurance Company of China), as well as the partnership among Tencent, ZhongAn Insurance, and DXY. Additionally, “Mommy Knows” partnered with “Xiao Yu San” to launch “Mommy Bao,” the first commercial critical illness insurance product for children in the maternal and child health sector.

Currently, there are four major healthcare security systems worldwide: the National Health Service system, the Social Insurance system, the Commercial Insurance system, and the Medical Savings Account system. The National Health Service system is represented by countries such as the United Kingdom, Sweden, and nations in Eastern Europe. The commercial health insurance model is exemplified by the United States, while the medical savings account model is represented by Singapore. China adopts a typical social insurance system; however, this single-payer approach offers relatively limited coverage, particularly for critical illnesses, leading to numerous cases where families fall back into poverty due to medical expenses. With the rise and continuous expansion of the middle class, public awareness regarding health, health protection, and financial planning has grown significantly. To prevent poverty caused by illness, commercial insurance has become a necessary supplement, resulting in increased demand for commercial medical insurance and health management services.

According to the 2015 Chinese Cancer Registry Annual Report, there are 3.21 million new cancer cases in China each year, equivalent to 8,550 cases per day. Every minute, six people are diagnosed with cancer and five die from it. The lifetime probability of developing cancer is 22%. The user bases of the Health 580 health+medical platform and the Xiaoyusan internet insurance flash-sale platform share significant commonalities, as both groups are conscious about personal health management and protection. There is a need for more comprehensive health management services. By integrating mobile health+medical platforms with corresponding insurance products on internet insurance platforms, online policy purchase can be facilitated and service cycles shortened, thereby boosting overall insurance sales. On the other hand, national social security provides incomplete coverage for critical illnesses; commercial medical insurance can fill this gap. Upon diagnosis, users receive a lump-sum payment, which helps alleviate family medical expenses. Thus, the integration of mobile healthcare and internet insurance holds substantial growth potential in the commercial insurance market.

In addition, the Health 580 platform has successively partnered with numerous authoritative medical institutions and health checkup providers. The cancer insurance products customized by Xiao Yusan for Health 580 feature a short waiting period and do not require pre-underwriting medical examinations; these health checkup data can serve as the basis for underwriting for Xiao Yusan’s cancer insurance policyholders.

Advantages of Internet Insurance over Traditional Insurance

Internet insurance refers to the transformation, upgrading, and reform of the insurance industry by leveraging various internet technologies, such as big data, the internet, mobile platforms, and the Internet of Things (IoT). The advent of the big data era also facilitates further market segmentation within the insurance industry, enabling a deeper understanding of customers’ family circumstances, financial status, and consumer psychology. This allows for more precise analysis of customer needs, thereby providing more targeted products and services and achieving precision service delivery.

Furthermore, leveraging the inherent characteristics of the internet, internet-based insurance offers users a simpler, faster, and more diversified experience, with greater transparency in policy administration. With relatively lower premiums, it enables individuals who lack the capacity for high-value coverage to also access insurance services through digital platforms.

Internet insurance shares significant commonalities with mobile healthcare, enabling the sharing of user bases and the enhancement of the mobile healthcare ecosystem. Health 580 has partnered with Xiaoyusan to launch an internet-based health insurance plan, providing health coverage for the general healthy population, individuals at high risk of cancer, and those with a family history of disease. The integration with insurance also represents one of the key breakthroughs for monetization in the mobile healthcare sector.

In addition, the Health 580 platform has successively established collaborations with numerous authoritative medical institutions and health checkup centers, as well as groups of domestic and international oncology experts. Committed to providing users with comprehensive, personalized services, the platform was officially launched in March 2016. Currently, its registered user base is experiencing rapid growth. Prior to its launch, the platform secured angel investment from Hu Xiang, Chairman of Beike Biology. To further expand its scale, it is currently preparing for its next round of financing.