Zhongtuobao is a Shanghai based community insurance App that provides a mutual life insurance product backed by a traditional insurer. Although the Chinese insurance regulator has warned against startups attempting to enter the value chain without a license, Zhongtuobao is a rare example of a Chinese startup combining the community insurance model (P2P) with a blockchain base.
Zhongtuobao is currently offering personal accident insurance, critical illness cover (cancer insurance) and employment disability cover.
How it Works?
- Each member joins Zhongtuobao through WeChat and downloads the Zhongtuobao App.
- Members then make a contribution to their selected risk category (critical illness, employment disability etc…) which is then underwritten by a traditional insurer.
- Part of the deductible is used to pay minor claims in whilst a licensed underwriter ensures regulatory approval of the Zhongtuobao business model.
Zhongtuobao is also trialling the use of blockchain to validate and settle claims however its blockchain initiative is still in beta phase. Zhongtuobao is co-operating with Chinese Bitcoin vendor bumeng.cn to explore the possibility of validating claims through a distributed ledger.
Ultimately, Zhongtuobao is attempting to forge a delicate link between a traditional underwriter, a community platform and the blockchain. Although this is a tall order which is further heightened by the regulatory scrutiny on all three fields, Zhongtuobao’s current progress is promising.
Participate in our next webinar on the theme of “Peer-to-Peer Insurance & Community” on Wednesday, 8th February 2017, 9am-10.15am (UK time). To hear more about P2P product/model register below