Competition in China’s emerging insurance technology scene is getting fierce, drawing several new players who want to tap the world’s third largest insurance market with its large mobile and digitally savvy consumer base.
CareVoice, China’s first review-based social platform that helps people make better health related decisions, is the latest insurtech start-up to attract investors, as it hopes to compete in the market by targeting a younger generation of affluent, tech-savvy consumers.
The Shanghai-based start-up recently completed its first major round of funding from China-based Haitao Capital and US-based SOSV, one of the world’s largest seed investors. It has so far raised a combined US$3.2 million from an earlier angel round and the current venture capital-backed round and hopes to reach US$100 million in sales within the next five years amid booming demand for private health care and the rapid growth of online insurance.
“The macros in China are very favourable,” said Sebastien Gaudin, chief executive officer and co-founder of CareVoice, in an interview with South China Morning Post. “There are around 150 million affluent consumers who are perfect clients for getting private medical insurance directly or through their employers. [As such] the mid to high end medical insurance market should reach US$4 billion in premiums by 2020 and continue to grow.”