Allianz, Baidu & Hillhouse Captial partner on joint venture

Insurer Allianz, Chinese internet firm Baidu and Asian investor Hillhouse Capital Group are joining forces to establish a nationwide digital insurance company in China.

The joint venture will use a new business model that, according to the firms, will put the needs of individuals and companies at its centre and offer affordable protection.

The venture will apply for a nationwide digital license to distribute insurance solutions online, with the three partners designing innovative approaches in travel, ecommerce, internet finance, short-term health, lifestyle and potentially also motor insurance in the future.

According to the firms, China’s economy is highly digitalised and is expected to provide unparalleled opportunities. They explained that market research shows digital premiums are expected to grow from €25 billion in 2015 to €107 billion in 2020.

Allianz, Baidu and Hillhouse say they will position the new venture to capture this opportunity and leverage the three parties’ strengths.

“The digital revolution in financial services is happening rapidly in Asia and particularly in China, where the financial services sector is being reinvented,” said George Sartorel, chief executive officer, Allianz Asia Pacific.

“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.”