Kuang Ming: Partnering with Commercial Insurance Is the Optimal Business Model for Chronic Disease Management

In "Series Report on the Summit Forum on Innovative Payment Models in Diabetes Education and Management: How Can Chronic Disease Management Collaborate with Commercial Insurance? A Practical Case Study of Zhangshang Tangyi and Taiping InsuranceIn the article “,” VCBeat analyzed the model combining commercial insurance with chronic disease management, using Taiping Diabetes Complications Insurance and TangXiaoBei as case studies. Kuang Ming, founder of Zhangshang Tangyi, also shared his insights on this matter.

Two Models of Collaboration Between Commercial Insurance and Chronic Disease Management

How Can Chronic Disease Management Collaborate with Commercial Insurance? Kuang Ming believes that there are currently two models. One involves collaboration between chronic disease management and health insurance, where health insurance serves as a rider product to life insurance, and chronic disease management is offered as an additional service to help policyholders manage conditions such as the “three highs” (hypertension, hyperglycemia, and hyperlipidemia). The other model is similar to Taiping Insurance’s diabetes complication coverage.

At the end of 2015, Zhangshang Tangyi partnered with China Taiping Insurance to launch an insurance product for diabetes complications—Taiping Diabetes Complications Insurance. As an internet-based chronic disease management service platform, Zhangshang Tangyi serves as the exclusive provider of customized chronic disease management services for this insurance product, enabling unified management of China Taiping Insurance users. All insured individuals will enjoy high-quality blood glucose management services provided by Zhangshang Tangyi, optimizing self-management of blood glucose levels and thereby reducing the incidence of complications.

In terms of partnership, Taiping’s Diabetes Complications Insurance has chosen to integrate exclusively with the Zhangshang Tangyi diabetes management platform.

Taiping Diabetes Complications Insurance is designed specifically for individuals already diagnosed with Type 2 diabetes, providing coverage benefits for four severe diabetic complications that may arise in the future. These four complications are: sequelae of stroke, end-stage renal disease, amputation, and bilateral blindness. In terms of pricing, Taiping Diabetes Complications Insurance adjusts premiums based on factors such as the duration of diabetes (diabetes age) and the insured’s current age.

In simple terms, this model involves insurers launching insurance products tied to specific diseases or vertical medical sectors. These products rely on companies providing chronic disease management services to deliver corresponding services to policyholders, with the expectation that the medical value generated through such in-depth engagement will reduce ultimate claims expenditures.

Chronic Disease Management Platforms Must Effectively Serve Both Insurers and Policyholders

“To firmly secure insurers as payers, services must be delivered with sufficient depth and quality. Kuang Ming told VCBeat that Palm Sugar Doctor’s services feature three key characteristics.”

First, Zhangshang Tangyi is the first platform in China to establish a comprehensive management and service system for patients. Targeting different user groups, Zhangshang Tangyi provides tailored service workflows and delivery methods, achieving a balance between standardization and personalization. This approach maximizes service efficiency while delivering personalized medical care, thereby minimizing ineffective efforts in doctor-patient communication.

Second, the entire service framework of Palm Sugar Doctor is multi-dimensional, rather than merely providing users with an app for recording blood glucose levels. The multi-faceted, customized service system offered by Palm Sugar Doctor is a comprehensive, three-tiered ecosystem centered on its mobile app and integrated with WeChat Service Accounts, call centers, and other channels. This structure enables insured members to receive seamless, customized medical services that combine online and offline components.

Third, adhering to a user-centric service philosophy, Palm Sugar Doctor lowers the barrier to entry and enhances user experience right from the data collection stage by leveraging its smart hardware device, Tang+. According to Kuang Ming, the upcoming Tang+ 2.0 achieves “foolproof,” zero-cost operation, fully accommodating users aged 60 and above.

“By delivering deep and high-quality services, we can incentivize users to adopt our products.” It is reported that since the official launch of Taiping’s Diabetes Complications Insurance in December 2015, Zhangshang Tangyi has served thousands of insured clients. These policyholders demonstrate very high engagement, with each receiving an average of more than five to six service interactions per week.

By delivering excellent user services, we can take a further step to help insurance companies control costs.

On one hand, high-quality services can encourage policyholders to engage in self-managed health care, thereby reducing the risk of disease. On the other hand, under the collaborative model between Zhangshang Tangyi and Taiping Insurance, both parties share information, which helps control insurance costs. For example, after a policyholder purchases Taiping’s diabetes complication insurance, their relevant information is transmitted to Zhangshang Tangyi. The policyholder then uses the Zhangshang Tangyi app and other tools for health management. Data generated during this process is synchronized with the insurance company, and any abnormalities detected during management are recorded. These abnormalities may serve as the basis for future insurance claims.

“From the very beginning of our venture, Kuang Ming had already determined to adopt a business model centered on collaboration with commercial health insurance. ‘I believe that partnering with commercial insurers represents the optimal business model, both at this current stage and far into the future.’”

Kuang Ming identifies three reasons. First, experiments in countries such as those in Europe and the United States have already demonstrated the feasibility of this business model. Second, insurance, as a payer, is the most effective means of enhancing diagnostic and treatment efficiency. Third, China’s overall social security reform is advancing, with commercial health insurance presenting the greatest opportunities.

On February 25, the Summit on Innovative Payment Models for Diabetes Education and Management will be officially held in Beijing. As the founder of Zhangshang Tangyi, the organizer of this summit, Kuang Ming also expressed his expectations.

“This forum is hosted by the Teaching Group of the Diabetes Branch of the Chinese Medical Association. It is encouraging to see that experts in the medical community are gradually recognizing the importance of collaboration between chronic disease management and commercial insurance. This indicates that there is a societal need to introduce such a powerful payer, which will then drive the advancement of chronic disease management and even medical progress,” said Kuang Ming. He noted that leaders from relevant departments of the National Health and Family Planning Commission, insurance industry research experts, diabetes academic specialists, education and management experts, media representatives, pharmaceutical company representatives, mobile health entrepreneurs, and capital institution representatives would all attend the forum. “I hope that through the discussions at this forum, we can obtain some experienced, valuable, and feasible solutions—ones that are superior to those currently in operation.”

For Kuang Ming, he looks forward to this forum ushering in a new era for out-of-hospital diabetes education and management.