In after-hours trading on Thursday, Zhibao Technology Inc. (NASDAQ: ZBAO) shares had a spectacular surge, rising 154.90% to $6.50. This significant increase came when the company announced a strategic partnership with Munich Re Beijing and PICC Property and Casualty Company Limited (“PICC”). With the first product anticipated to emerge in the next months, the partnership seeks to establish a new generation of medical insurance products in China.
Overview of the Partnership
The partnership between Munich Re, PICC, and Zhibao is expected to completely transform China’s private health insurance industry. ZBAO was crucial in creating a solution that meets the demands of China’s expanding middle class by utilizing its extensive understanding of the local insurance market and expertise in providing upscale medical services. Chinese customers will have access to first-rate medical resources through this offering that are not covered by national insurance.
Key Roles of Each Partner
In this collaboration, Zhibao will be responsible for customer service, policy management, and claims processing, ensuring a seamless experience for policyholders. The company’s extensive medical network will facilitate direct billing across greater China, adding further convenience for users.
PICC, one of the biggest property and liability insurance providers in the world, will use its vast network of more than 3,000 branch offices to market products. Crucial reinsurance capacity and professional risk management will be supplied by Munich Re, a world leader in reinsurance.
Anticipated Market Impact and Growth
Through this collaboration, Zhibao will be able to take advantage of China’s underdeveloped private health insurance sector. ZBAO will gain unmatched brand awareness and credibility by partnering with industry titans like PICC and Munich Re, which will encourage the new product’s uptake.
According to the firms’ projections, the new insurance product will increase Zhibao’s earnings by generating millions of RMB in premiums within its first year. This partnership represents the start of a successful endeavor for all stakeholders, with double-digit growth predicted over the following three years.
