Inside China's Trendy Internet-Based Diabetes Insurance: Partnerships, Products, and Market Disruption

On November 19, media outlets reported that ZhongAn Insurance, China’s first internet-based insurance company, had partnered with Tencent and DXY to customize a diabetes complication insurance product called “Tang Xiaobei” for Tang Daifu. This development further expands the lineup in the sector combining commercial insurance with chronic disease management for diabetes, and more competitors are bound to enter the field in the future. Let us first review the two major previously disclosed events.

On November 12, Da Te Bao, the first internet insurance platform in China to be approved for an insurance brokerage license, officially launched the “Tui Tang Gu” diabetes insurance. On August 6, 2015, Taikang Life Insurance announced the official opening of its specialized health management subsidiary and, for the first time, introduced the “Taikang Sweet Life Plan A” diabetes health insurance specifically for individuals diagnosed with diabetes.

How Internet-Based Diabetes Programs Are Partnering with Insurance Companies

According to VCBeat, some diabetes-focused companies have proactively sought partnerships with insurers, while in other cases, insurers have taken the initiative. For instance, Da Te Bao, a relatively new internet insurance brokerage firm, proactively reached out to Wei Tang (Micro Sugar) to establish a collaboration; Taikang Insurance also took the initiative to contact Tang Hu Shi (Sugar Nurse) to forge a partnership. Regardless of who extended the olive branch first, the successful formation of these collaborations is clearly based on both parties’ endorsement of the integrated model of insurance plus diabetes management services, as well as their shared assessment of future market trends. Both sides recognize insurance as one of the viable pathways for profitability in internet healthcare. This alignment in philosophy and shared vision has laid the foundation for realizing these partnerships.

From the insurer’s perspective, insurance companies have a strong willingness to collaborate with multiple enterprises. The primary reason is that different enterprises have entered the market from distinct angles—such as different regions, healthcare institutions, and patient populations—during their development, thereby accumulating diverse advantageous resources.

Taken together, this may cover the majority of China’s healthcare service landscape, representing an intangible asset readily accessible to insurance companies and laying the foundation for their future development plans.

For example, Zhou Lei, CEO of Da Te Bao, explained that although the company initially partnered with only three firms—Zhangshang Tangyi, Weitang, and Xuetang Gaoguan (with the “Tuitanggu” platform from Datangyi Edition subsequently added to its website, and further changes to partners anticipated)—the number of diabetes-focused enterprises it actually collaborates with extends far beyond these three. “Tuitanggu” represents a coalition of more than ten domestic diabetes management platforms. Recognizing that each enterprise possesses distinct strengths and accesses different underlying resources, Da Te Bao has adopted a win-win collaborative model that leverages collective expertise to piece together a comprehensive strategic blueprint.

Furthermore, insurance companies are seeking multi-party collaborations. In addition to leveraging the advantageous resources offered by various partners, the distinct differentiation among enterprises—each with its own unique strengths—has also contributed to the formation of a one-to-many model.

Taking Da Te Bao as an example, Zhou Lei considers Zhangshang Tangyi (Pocket Diabetes Doctor) a company with prominent internet thinking, which greatly drives the success of the internet insurance model. Zhangshang Tangyi’s strategy involves partnering with Alibaba Cloud to mine behavioral data from users’ online purchases of diabetes-related products, precisely identify target demographics, and conduct targeted product promotions, thereby rapidly acquiring customers.

Looking at WeTang, as a pioneer enterprise that was among the earliest to enter the diabetes field, it benefits from an early start, high brand recognition, relatively abundant physician resources, and a substantial user base. Currently, the WeTang Physician Platform boasts over 8,000 diabetes specialists across China, while the number of users who have utilized its patient-facing services has exceeded 2 million, with continuous daily growth. In the latest 2015 APP Category Ranking published by Internet Weekly, the WeTang APP ranked among the top ten. Similarly, in the Comprehensive Competitiveness Ranking of Mobile Health Apps issued by APPBase, WeTang placed 11th. Furthermore, in both rankings, WeTang secured the number one position among diabetes-specific apps, underscoring its exceptional popularity. Therefore, the extensive user data accumulated by WeTang over the years represents a valuable and highly sought-after resource for insurance companies.

Furthermore, regarding Xuetang Gaoguan (Blood Sugar Steward), Zhou Lei stated that those with outstanding medical service capabilities hold a distinct advantage in user acquisition. The medical services provided by Xuetang Gaoguan are primarily characterized by a large team of professional physicians, including full-time doctors and part-time endocrinologists, who can continuously monitor user data around the clock to ensure stable blood glucose control, thereby providing robust and reliable after-care support. Such professional medical services signify close ties with healthcare institutions, which will facilitate DataTeBao’s future entry into hospitals and help unlock access to specialized medical resources.



Why Did Taikang Choose to Partner with Tang Hushi? According to Zhang Jianpeng, COO of Tang Hushi, the primary reasons are as follows: Out of prudence and conservatism, insurance companies tend to select products with complete qualifications and certifications within the legal and regulatory framework. Tang Hushi, in collaboration with Xiangya School of Medicine, has passed clinical trials at Xiangya Hospital. As the first glucose management platform integrating software and hardware to receive certification from China’s National Medical Products Administration (NMPA, formerly CFDA), it can standardize self-monitoring of blood glucose for diabetic patients. This constitutes the main reason for Taikang Insurance’s selection.

Moreover, Sugar Nurse products certified by the CFDA have gained recognition in overseas markets, with exports to countries and regions in the Middle East, Africa, India, Europe, and South America. The company’s product series is expected to obtain European CE certification shortly, while the third-generation Sugar Nurse Gold product is slated for launch next year, with its FDA certification currently underway.

From the perspective of diabetes-focused startups, integrating insurance services and moving away from the traditional model that prioritizes financial management over protection not only expands service offerings and attracts more users but, more importantly, provides genuine medical insurance coverage tailored to users’ actual needs. This helps alleviate their financial burden and reduce healthcare costs, aligning with national health insurance policies while truly demonstrating the valuable role of internet-based platforms in chronic disease management.

VCBeat also learned about the reasons behind the collaboration between WeTang and Datebao. Feng Yanfei, CEO of WeTang, stated that Datebao’s product development team proactively sought partnership. WeTang believes that insurance is a rapidly growing sector, and Datebao’s “Internet + Insurance” model represents an innovative approach within the industry. Datebao has been actively exploring the provision of the most suitable insurance products for diabetic patients, which aligns with WeTang’s own strategic considerations. As a result, the two parties quickly reached a consensus and established a collaborative partnership.

For Zhangshang Tangyi, commercial insurance was identified from the outset as the most critical business model for internet healthcare. Consequently, the company has been actively seeking insurance partners and even purposefully targeted investors with insurance backgrounds since its inception. During the angel funding round, it successfully secured investment from Ping An Ventures, a subsidiary of Ping An Insurance Group. This October, Ping An Ventures further increased its stake by participating in the Series A follow-on financing.

What Does Online Internet-Based Diabetes Insurance Look Like?

A comparison between Taikang Insurance’s “Sweet Life Plan A” and Datebao’s “Tui Tang Gu” reveals that, unlike most traditional products, both policies specifically target individuals already diagnosed with Type 2 diabetes, providing coverage for four severe diabetic complications in the future. These four complications are sequelae of stroke, end-stage renal disease, amputation, and blindness in both eyes.



The “Sweet Life” Plan A product also partners with Sugar Nurse and Pocket Diabetes Doctor to assist individuals with diabetes in long-term chronic disease management, thereby strictly controlling the occurrence of complications. The product guarantees that if users still develop four specified severe complications despite adhering to health management measures during the policy period, Taikang Insurance will provide compensation based on the insured amount agreed upon at the time of enrollment. Eligible applicants are aged 30 to 65 years. Policy terms include 5, 10, and 20 years. The coverage amount is RMB 50,000 per unit, with a minimum purchase of two units and a maximum of six units. Under the collaboration with Sugar Nurse, users must pay insurance premiums ranging from RMB 10,000 to RMB 30,000 to be eligible for a future benefit payout of RMB 100,000.

Furthermore, it is evident that the pricing of the various “Tui Tang Gu” products launched by Da Te Bao varies due to differences in the services provided by each partner. Nevertheless, the fundamental structure remains consistent: each offering comprises a proprietary blood glucose management service package bundled with Da Te Bao’s diabetes complication insurance. According to Zhou Lei, this arrangement can be characterized as “he sells his services, while I sell my insurance.” This indicates that although the products are marketed as a bundle, the service positioning remains distinct, with each party bearing its own respective obligations and responsibilities.

The Diabetes Care Package from Zhangshang Tangyi includes hardware such as imported-brand blood glucose meters, the smart device "Tang+", and lancing devices. Software services encompass online and telephone consultations with platform physicians, dietary and exercise interventions, health and blood glucose coaching, and risk assessment for diabetic complications. The package provides coverage of RMB 50,000 for four types of complications. Prices for Zhangshang Tangyi start at RMB 458.

WeiTang’s diabetes care service includes Youmi Youhezi’s smart hardware, along with one month of VIP access to authoritative private physicians, online medical consultations, biannual HbA1c testing, diabetic-friendly meal plans, and an online pedometer feature. The coverage amount is RMB 100,000, covering four types of complications, with prices starting from RMB 996.

Gaoxuetangguan does not offer smart hardware, but provides services such as risk assessment for diabetic complications, health management specialists, private physician services, and data management. DataTe’s coverage amount is also RMB 100,000, covering the same four types of complications.

It is worth noting that although the prices vary, they all start at N yuan. This means that the hundreds of yuan listed on the official website are merely the base price; the actual premium will be adjusted based on factors such as the duration of diabetes (i.e., "diabetes age") and the individual’s age. Therefore, the premium paid by each user differs. For instance, a longer duration of the disease may result in a higher premium, whereas a shorter duration leads to a lower one, all determined by a classification probability algorithm.

According to media reports, Da Te Bao also offers a RMB 1 service package, which is not displayed on its official website. Ouyang Jun, CEO of Xue Tang Gao Guan (Blood Sugar Manager), explained that the so-called RMB 1 service package means that if a user purchases it and develops one of four specified complications, they can receive an insurance benefit of RMB 20,000. In contrast, the standard insurance plan, starting at RMB 375, provides a coverage amount of RMB 100,000. Therefore, the frequency, content, and quality of services differ between the two types. Wei Tang further pointed out that the insurance product included in the RMB 1 service package does not cost only RMB 1; rather, all costs are borne by various parties. For each policy sold, the insurance company and diabetes-related enterprises bear costs of approximately RMB 200.

How Can Online Diabetes Insurance Achieve Profitability?

In fact, according to VCBeat, the newly launched internet insurance products do not appear to have generated significant profitability for any of the stakeholders yet. The main reasons are as follows: First, partnering diabetes companies do not seem to view insurance as the ultimate monetization channel; rather, offering insurance remains an important means to support their own development, serving as one of the strategies to enhance user satisfaction, increase the user base, and accumulate big data. Second, from an objective standpoint, as an emerging offering, online insurance products have been on the market for only a short period, making it difficult to realize profits in the near term. Moreover, user acceptance takes time, so large-scale monetization cannot be achieved immediately. Third, collaborative models necessarily involve revenue sharing, which may further reduce the already modest margins of affordably priced insurance products.

According to Zhang Jianpeng, COO of Tang Hushi (Sugar Nurse), the cooperation model with Taikang Insurance involves patients purchasing insurance products from Taikang Life Insurance. Taikang then procures corresponding numbers of Tang Hushi service packages based on the orders placed. This comprehensive service package includes the Tang Hushi blood glucose meter and complimentary medical services provided by Tang Hushi. Currently, the “Sweet Life Plan A” represents Taikang Life Insurance’s innovative exploration in diabetes insurance, with a series of related products planned for future launch.

Da Te Bao’s situation is somewhat unique. As it holds an online insurance brokerage license, premiums paid by users through its online platform are transferred directly to its partners, Munich Re and China Taiping Insurance. Da Te Bao only charges an additional channel fee, the revenue from which is split equally with multiple diabetes-focused companies.

Regarding the rationale behind Dattebao’s collaboration with internationally renowned insurers Munich Re and Taiping General Insurance to jointly develop the “Tui Tang Gu” product, Zhou Lei explained that Munich Re, established in 1880, boasts robust underwriting capabilities and sophisticated professional services. More importantly, it possesses an authoritative and extensive diabetes database, which Dattebao valued most. Consequently, the RMB 100,000 coverage limit for “Tui Tang Gu” was precisely calculated by actuaries from both parties, based on data regarding diabetes incidence rates across different age groups.

In fact, Da Te Bao’s profit model relies on two main pillars. First, it leverages an internet-based innovative model to eliminate traditional agents and sales intermediaries, enabling direct-to-consumer (2C) marketing at extremely low prices. Second, it aims to generate revenue through profit-sharing from big data analytics services in the future. To this end, Da Te Bao has developed low-cost insurance products for specific single diseases. The sale of these insurance policies naturally facilitates user segmentation, allowing the company to precisely identify populations with different disease types and subsequently derive multiple revenue streams. Hence, the “Tui Tang Gu” initiative was launched to lay the foundation for building a diabetes patient database. Third, as a pure-play insurance company, Da Te Bao also hopes to obtain its own insurance license in the future, rather than merely collecting channel fees. Since the product launch, fewer than 100 days ago, the various “Tui Tang Gu” offerings under Da Te Bao have collectively sold between 1,000 and 2,000 policies.

What are the outcomes of the collaboration?

Insurance companies and internet-based diabetes enterprises engage in both conventional business collaborations and deeper content partnerships. Business collaboration involves mutual promotion, with the same diabetes insurance products featured on both the insurers’ websites and their respective mobile apps. This reciprocal promotional model is provided free of charge, with no advertising fees levied on either party.

In terms of content, the focus is primarily on collaboration involving big data. The data accumulated by diabetes management companies is essential for insurance providers, as it pertains to product design and verification of information authenticity; therefore, both parties have agreed to share user data. For instance, WeTang has amassed substantial data resources in its early stages and conducted in-depth research, enabling it to accurately implement tailored intervention strategies for different users. These efforts offer valuable insights for the design of insurance products. For example, should an insurance product target Type 1 or Type 2 diabetes? How should specific criteria be structured? Based on such data, insurance developers can create products that maximize benefits for users.

Tang Hushi also believes that big data represents the primary avenue for future profitability, as sectors such as pharmaceuticals, healthcare, insurance, and internet-based management platforms will all require data on chronic diabetes management. Specifically regarding the partnership with Taikang, valuable data worth exploring in depth includes: What are the characteristics of users who purchase diabetes insurance? Key factors include the duration of diabetes, medications taken, geographic distribution of the disease, the correlation between purchasing other insurance products and diabetes-specific insurance, the relationship between patients’ social security contributions and their acquisition of commercial insurance, and the association between patients’ access to medical resources and transparency of medical information and their insurance purchasing behavior. The significant implications hidden within these diverse data points merit thorough exploration.

So, how many new users did the launch of diabetes insurance actually bring to each company?

Ouyang Jun from Blood Sugar Executive also stated that the user base has been continuously growing since the launch of the insurance product. Due to the short time since its release, specific user numbers have not yet been compiled; however, Blood Sugar Executive is already providing services to paying users, with a trend of sustained growth. Compared to the previous mass-market, basic free services, the current personalized services adhere to stricter and more refined standards in terms of service processes, frequency, and other details. For instance, while users previously received free, non-targeted consultations with any available physician, Tui Tang Gu can now assign a private physician to diabetic patients for comprehensive, end-to-end diabetes management. Additionally, Ouyang Jun introduced the upcoming launch of version 4.0 of the Blood Sugar Executive app. Its most significant difference lies in its design based on a self-developed complication interpretation model, which allows the general public to assess their probability of developing diabetes and various related complications through testing.

Similarly, Weitang’s “Tui Tang Gu” insurance has garnered significant attention from individuals with diabetes. In response to user feedback, Weitang continuously reflects on and improves its service offerings and insurance products. By leveraging the rapid response mechanisms of the internet, it consistently updates its services to better meet user needs, with plans to continually launch products tailored to different types of diabetes patients in the future. Consequently, future products will not be limited solely to the Weitang app or the Da Te Bao channel; both parties are exploring additional channel resources with the aim of ultimately benefiting a broader population of individuals with diabetes. The table below provides a comparative overview of four diabetes-focused startup companies:


Such is the case with new internet-based diabetes insurance products. What do traditional diabetes-related insurance products look like? VCBeat has compiled the following information for comparison: In July 2013, Kunlun Health Insurance Company launched a lifetime critical illness insurance product for individuals with diabetes. This product also targets diabetic patients aged between 30 and 70 years. Meanwhile, the health coverage provided by the insurer includes both financial compensation and health management services.

If the Insured is first diagnosed with one or more of the five specified complications listed in the Contract—namely stroke, uremia, blindness, amputation, and myocardial infarction—after 180 days from the Effective Date of the Contract, the Insurance Company shall pay a Complication Benefit equal to 20% of the Sum Assured annually thereafter until death; furthermore, upon the occurrence of such complications, the Insurance Company shall waive any unpaid premiums. If the Insured dies as a result of an accidental injury, or dies from illness after 180 days from the Effective Date of the Contract, the Insurance Company shall pay the Death Benefit in the amount of the Sum Assured.

In addition to financial compensation, "Diabetes Insurance" also provides insured individuals with long-term professional health management services, guiding them to adopt healthy lifestyle habits to prevent and delay the onset of complications.

Kunlun Health Insurance provides health management services based on internationally recognized effective therapies, establishing personalized health information spaces for diabetic patients. These services include regular assessments of health status and risks of diabetes-related complications; dynamic and continuous intervention guidance on weight, physical activity, blood glucose, blood pressure, and diet; issuance of emergency contact cards for customers to facilitate assistance in urgent situations; provision of consultations with health experts and health education lectures; distribution of handbooks on the prevention and control of complications; and regular delivery of health-related SMS messages and newsletters.

Therefore, conceptually, the lifetime insurance policy offered by Kunlun Health Insurance is fundamentally consistent with the currently popular internet-based diabetes insurance products, except that health management services are delivered through digital healthcare channels.

In addition, it can be observed that most diabetes insurance products on the market primarily cover Type I diabetes. Definitions and payout criteria for this critical illness vary across insurers, with significant discrepancies in some cases. VCBeat has listed the following examples for reference: