Tencent to offer insurance in its apps

Tencent to offer insurance in its apps

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Competition in China's fast-growing online insurance industry is intensifying, as Tencent recently secured a new license to sell insurance products on its popular messaging apps WeChat and QQ. The China Insurance Regulatory Commission (CIRC) said Wednesday it granted an operating license to Wemin Insurance Agency, a new insurer in which Tencent owns a 57.8% controlling stake. Other shareholders of Weimin include Taiwan-based Fubon Property & Casualty Insurance and a Chinese private equity fund. According to Caixin, technology companies are flocking to the internet insurance industry in China in recent years. They are riding on a fintech wave, as well as the country's opening of its financial services sector once dominated by state companies. The hype remains unabated, as shown by the massive oversubscription in the initial public offering of ZhongAn Online Property & Casualty Insurance, China's first online-only insurer, in Hong Kong two weeks ago. In China, about 65% of new insurance policies were sold through the internet last year.