Alibaba Group to Set Up a Joint Venture with Major Insurance Company for the Internet Health Insurance Sector
Offshoots of the e-commerce conglomerate Alibaba Group Holdings are setting up a joint venture with a major insurance company to tap into the huge potential of the country’s internet health insurance sector. Alibaba Health Information Technology said that in an after trade filling of the Hong Kong Stock exchange last Thursday entered into agreement with six parties in establishing a joint venture that will engage in internet health insurance related operations in China.
The joint venture company with a registered capital of 1 billion yuan is Alibaba’s latest entry into China’s nascent but rapidly growing internet insurance sector. Through this joint venture, Alibaba Heatlh can participate in the internet health insurance that is new and promising business area which also helps align the interests of the participants in the health care market. Although the joint venture is still pending and is waiting for the approval from the insurance authority in China. China’s Taiping Insurance Holdings Co accounts for 21 percent stake of said to be the largest shareholder of the joint venture.
The combined stakes that are held by Alibaba Heath China Technology with Shanghai Yunfeng, a privately owned equity firm tht is also co-founded by Jack Ma Alibaba’s Chairman holds a total of 40 percent of stakes. The remaining 39 percent of the joint venture is under TPL, Shenzhen Baiyeyuan and Yuwell Technology. Industry observers are not surprised that Alibaba Health’s move to health insurance as the integration of internet technology and the insurance is shwong strong growth potential. A research director for the Beijing based internet consultancy Analysys International that it makes sense for Alibaba Heath to make Foray in the sector that have a natural advantage in data and technology.