Zhong An Online P&C Insurance Co., the first and only company in China that has an Internet insurance license, gained a net profit of over RMB 200 million (USD 30 million) in 2015, the finance channel of Netease reported on Tuesday.
According to the China Securities Regulatory Commission, Zhong An’s income from insurance premiums was RMB 2.2 billion in 2015, representing a year-over-year increase of 200%. The company offers more than 200 insurance products and had written more than 3.6 billion policies for 369 million customers as of the end of 2015.
Founded in October 2013, Zhong An is an online insurance company backed by Chinese e-commerce giant Alibaba, top Internet company Tencent and leading insurance provider Ping An.
Among them, Alibaba’s financial affiliate Ant Financial is the largest shareholder with a 16% stake. The revenue of the company mainly comes from a return-delivery insurance product for buyers on Taobao.com, Alibaba’s flagship online marketplace in China. This service accounts for 65% of total revenue. In order to reduce the over-reliance on Taobao.com, the company plans to reduce this proportion to 40% this year. In addition, the company also offers other lines of insurance ranging from flat-tire insurance to insurance against accidents caused by drones.
Online insurance is a growing industry in China. Data from the Zhongshang Industry Research Institution shows that RMB 223 billion was spent on online insurance premiums in China in 2015, an increase of 160% year over year. Zhong An is facing fierce competition from similar services, including An Bang Insurance and Yang Guang Insurance.