Since the Zhong An IPO, Tencent has been diluting its position in Zhong An and adding additional positions within insurance to further bolster its ability to capitalise on the impending digital insurance era. To this end, the Chinese Insurance Regulatory Commission has recently approved the functioning of Weimin Insurance Agency in which Tencent holds a 60% stake.
The approval gives Weimin, and by extension Tencent, the ability to transact insurance products as well as conduct basic loss adjustment services and authorize claims. Crucially, Weimin also has access to WeChat and QQ’s 900 mn user base and Weimins product range will presumably will be incorporated into WeChat Pay and its broader ecosystem.
Insurance analysts have remarked of Tencent’s recent insurance investments that big internet companies will not miss the opportunities brought by the demand for fintech services, particularly internet-based insurance. Internet companies aim to hold core assets, which are customer resources. They are not going to just stay as distributors. More moves will be made to fulfill demand in the entire supply chain of the insurance market.