Germany-based insurance group Allianz, China-based internet conglomerate Baidu and investment firm Hillhouse Capital combined yesterday to form a digital insurance company that will serve the Chinese market.
The joint venture, which is yet to be named, is applying for a digital licence to distribute insurance policies online. It will look to serve a digital premium market expected to grow from €25bn ($26.4bn) this year to €107bn in 2020.
Allianz, Baidu and Hillhouse plan to collaborate on devising and implementing innovative insurance approaches for areas such as travel, e-commerce, internet finance, short-term health insurance and, possibly in future, motor insurance.
George Sartorel, chief executive of Allianz subsidiary Allianz Asia Pacific, said: “The digital revolution in financial services is happening rapidly in Asia and particularly in China, where the financial services sector is being reinvented.
“With the speed of innovation that is taking place, we will see the quick disruption of traditional models. Allianz and its partners are at the forefront of this mega trend.”