High-tech and insurance companies go hand in hand

Aegon THTF Life Insurance Co Ltd plans to integrate insurance services with Internet technologies after joining hands with Shanghai-listed technology company Tsinghua Tongfang (THTF), the company's top management said on Wednesday.

The Shanghai-based insurer is a 50:50 joint venture formed last December between the Netherlands' insurance company Aegon N.V. and China's high-tech company THTF, with registered capital of 2.1 billion yuan ($338 million) and asset size of over 10 billion yuan.

"The joint venture aims to promote its service by integrating its original offline channel with the newly established online platform through the technology support by its new Chinese partner," said Zhu Yong, general manager of Aegon THTF Life Insurance Co Ltd.

According to Zhu, the company's financial performance in the first half of this year is better than ever. The first half-year's annualized new premiums, a key indicator of an insurance company's performance, have exceeded that of the whole of last year, up 50 percent year on year.

The company's strategic plan is largely inspired by China's "Internet Plus" plan which was unveiled on March 5 by Premier Li Keqiang in the government work report to boost economic growth and modernize China's industries through technology.

"Our newly established online platform integrates sales, services and communication through official website and APP, e-commerce platform and official WeChat and microblog accounts," said Zhu.

The joint venture previously named Aegon-CNOOC Life Insurance Company was co-invested by Aegon N.V. and China National Offshore Oil Corp (CNOOC). CNOOC sold its 50 percent stake in Aegon-CNOOC to THTF for one billion yuan last December.

Adopting Internet technologies has become a major trend in China's insurance industry.

The report on the development of online insurance industry in 2014 published by Insurance Association of China shows that the industry saw a substantial increase in the premium income in 2014, recording 85.89 billion yuan in total, up 195 percent year on year.

China's insurance industry should seize the opportunities in the Internet era and avail itself of the "Internet Plus" initiative, said president of Insurance Association of China Zhu Jingyuan on May 27.