Zhibao Technology Announces Strategic Expansion in the Pet Insurance Market Through Its "Chong Bao Bao" Platform

Rhea-AI Summary

Zhibao Technology (NASDAQ: ZBAO) announced its strategic expansion into China's pet insurance market through its new platform 'Chong Bao Bao'. The company signed a strategic cooperation and investment agreement with UAN Pets, acquiring a share in the company that has served over 1 million customers and works with major insurers like PICC and Ping An.

Launched in October through Zhibao's subsidiary Sunshine Insurance Brokers, Chong Bao Bao adds to Zhibao's portfolio of 40+ digital insurance solutions. The expansion comes as the global pet insurance market is projected to grow from $10.1 billion in 2023 to $38.3 billion by 2033, with Asia-Pacific being the fastest-growing region. Current market penetration for pet insurance in China stands at less than 1% as of 2023.

Positive

• Strategic investment and partnership with established player UAN Pets (1M+ customers)
• Entry into fast-growing pet insurance market projected to reach $38.3B by 2033
• Low market penetration (<1%) in China indicates significant growth potential
• Expansion of product portfolio with pet insurance adds to existing 40+ solutions

Negative

• None.

Insights

InsurTech Market Analyst

The strategic expansion into pet insurance through the "Chong Bao Bao" platform represents a calculated move into a high-potential market segment. With $10.1 billion global market size in 2023 projected to reach $38.3 billion by 2033, the growth trajectory is compelling. The less than 1% market penetration in China signals massive untapped potential. The partnership with UAN Pets, which has served over 1 million customers and maintains relationships with industry giants like PICC and Ping An, provides Zhibao with immediate market access and established distribution channels. The B2B2C model through embedded digital insurance platforms could accelerate market penetration, though the company will need to navigate intense competition and consumer education challenges. The Asia-Pacific region's position as the fastest-growing market segment adds credibility to this strategic pivot. However, the small market cap of $60.8 million suggests resources for rapid expansion, making the UAN partnership important for execution.

Digital Strategy Expert

The "Chong Bao Bao" platform launch represents a strategic digital transformation play in an underserved market. The integration with UAN's existing infrastructure and Zhibao's technological capabilities creates a compelling digital distribution model. The platform approach, coupled with 40+ digital insurance solutions, indicates strong potential for cross-selling and ecosystem development. The B2B2C embedded insurance strategy aligns with modern digital distribution trends, potentially reducing customer acquisition costs and improving market penetration. The partnership with established platforms like Alipay provides significant digital reach. However, success will heavily depend on user experience, digital marketing execution and the ability to leverage data analytics for product optimization. The technological infrastructure investment throughout 2024 suggests a well-planned digital rollout rather than a rushed market entry.

Shanghai, China--(Newsfile Corp. - December 19, 2024) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced a strategic expansion into the pet insurance market in China.

Earlier this year, Zhibao Technology signed a strategic cooperation and investment agreement with UAN Pets, an established player in the pet insurance market. UAN works with leading Chinese insurers, including PICC, Ping An, and with leading platforms such as Alipay, and has served more than 1 million customers to date. This agreement resulted in Zhibao taking a share of UAN and established a framework for both parties to work together more closely moving forward.

In October, Zhibao's subsidiary Sunshine Insurance Brokers launched "Chong Bao Bao," its online platform & brand for offering pet insurance solutions in China. Through close cooperation between Sunshine and UAN, Zhibao is well poised to demonstrate strong growth in this rapidly expanding market. Pet medical and liability insurance joins Zhibao's growing list of 40+ digital insurance solutions covering a wide array of industries and products.

"I am excited to expand our presence in the pet insurance space," said Zhibao's Chief Executive Officer Mr. Botao Ma. "With rapidly growing awareness and consumer demand for pet insurance products, Zhibao will be well positioned to deliver industry-leading products through our 2B2C embedded digital insurance platform."

"Zhibao has spent considerable time and effort laying the foundation for this expansion over the course of 2024," continued Mr. Ma. "Our strategic cooperation and investment in UAN Pets joins their market positioning with our strong technological underpinnings. With these advantages, I am confident our Chong Bao Bao platform will drive strong revenue to the company."

"This underscores our commitment to bring market-leading products to our B-Channels and end users across a wide range of markets. We look forward to deepening our relationship with UAN and with other similar synergistic teams in the future," concluded Mr. Ma.

Reporting from Allied Market Research predicts the global pet insurance market will grow from $10.1 billion in 2023 to $38.3 billion by 2033, with Asia-Pacific being the fastest growing region. This increase reflects a growing awareness and willingness to purchase insurance coverage for pets. Joint market research from Zhong'An Insurance and Ant Insurance shows market penetration for pet insurance stands at less than 1% as of 2023.

About Zhibao Technology Inc.

Zhibao Technology Inc. (NASDAQ: ZBAO) is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").

Zhibao has developed over 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao acquires and analyzes customer data, utilize big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.

About UAN Pets

Founded in early 2017 and based in Beijing, UAN Ying Technology (Beijing) Co., Ltd. ("UAN") is a leading provider of comprehensive pet insurance solutions in China. The company is dedicated to improving the efficiency of pet medical services through digital technologies, alleviating the high costs of veterinary care for pet owners. UAN's core team consists of experts from major insurance companies and top internet firms, and the company has established partnerships with multiple insurers and online platforms, including Dadi, PICC, Ping An, Alipay, JD.com, and ByteDance. By leveraging internet technology, big data, and cloud computing, UAN bridges the gap between insurance companies, online platforms, and offline pet services, enhancing information flow and consistently delivering value across the entire pet insurance and services ecosystem.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

Investor Relations Contact

Zhibao Technology Inc.
Investor Relations Office
Email: ir@zhibao-tech.com

Skyline Corporate Communications Group, LLC
Scott Powell, President
Avenues Tower
1177 Avenue of the Americas, 5th floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234448

FAQ

What is Zhibao Technology's (ZBAO) new pet insurance platform called?

Zhibao Technology's new pet insurance platform is called 'Chong Bao Bao', launched in October 2024 through its subsidiary Sunshine Insurance Brokers.

How big is UAN Pets' customer base that ZBAO partnered with?

UAN Pets has served more than 1 million customers and works with leading Chinese insurers including PICC and Ping An, as well as platforms like Alipay.

What is the projected growth of the global pet insurance market by 2033?

According to Allied Market Research, the global pet insurance market is expected to grow from $10.1 billion in 2023 to $38.3 billion by 2033.

What is the current pet insurance market penetration rate in China as of 2023?

According to joint market research from Zhong'An Insurance and Ant Insurance, the pet insurance market penetration in China stands at less than 1% as of 2023.

How many digital insurance solutions does ZBAO offer after adding pet insurance?

Zhibao Technology offers more than 40 digital insurance solutions covering various industries and products, including the newly added pet medical and liability insurance.