Zhibao Technology Subsidiary Sunshine Insurance Brokers Wins Contract to Provide "Hui Jia Bao" Inclusive Homeowners' Insurance in Nanjing

Rhea-AI Summary

Zhibao Technology Inc. (NASDAQ: ZBAO) announced that its subsidiary, Sunshine Insurance Brokers, has secured a contract to provide the 'Hui Jia Bao' inclusive homeowners' insurance product in Nanjing, China. Marketed as 'Ning Jia Bao', this implementation is insured by six leading insurers, led by PICC's Nanjing branch. Hui Jia Bao, starting at CNY 99 per year, aims to fill a critical coverage gap in China's insurance market. The company projects this solution to generate up to CNY 230 million in premium and CNY 46 million in revenue over the next three years. Zhibao is in discussions to launch Hui Jia Bao and Hui Min Bao products in additional Chinese cities, furthering its mission to provide affordable and inclusive insurance products.

Positive

• Secured contract to provide 'Hui Jia Bao' insurance in Nanjing, a city with over 9 million residents
• Projected to generate up to CNY 230 million in premium over three years
• Expected to bring up to CNY 46 million in revenue to the company over three years
• Expansion plans for Hui Jia Bao and Hui Min Bao products in multiple Chinese cities

Negative

• None.

Insights

Financial Analyst

This contract win for Zhibao's subsidiary Sunshine Insurance Brokers is a positive development for the company's growth strategy. The projected CNY 230 million in premium and CNY 46 million in revenue over three years represent a significant revenue stream. However, it's important to note that these are management projections and actual results may vary.

The expansion of the Hui Jia Bao product to Nanjing, a major city with over 9 million residents, demonstrates market validation and potential for scalability. The low-cost, inclusive nature of the product (CNY 99 per year) could drive high adoption rates, particularly among lower-income segments. This aligns with China's push for greater insurance coverage, potentially positioning Zhibao favorably with regulators and local governments.

Investors should monitor the execution and uptake of this product in Nanjing, as well as the company's ability to expand into other cities as mentioned. The success of this model could significantly impact Zhibao's future growth trajectory and market position in the InsurTech sector.

Insurance Industry Expert

The Hui Jia Bao product represents an innovative approach to addressing the homeowners' insurance gap in China. By partnering with established insurers like PICC and working with local governments, Zhibao is creating a unique market position. The low entry price point of CNY 99 per year is important for penetrating the underserved market segment.

The combination of Hui Jia Bao (homeowners' insurance) with Hui Min Bao (medical insurance) creates a comprehensive protection package for low-income families. This strategy aligns with global trends in microinsurance and financial inclusion, potentially setting Zhibao apart in the competitive InsurTech landscape.

However, profitability at such low premium levels could be challenging. The success of this model will likely depend on achieving scale and efficient operations. Investors should pay attention to customer acquisition costs, claims ratios and the company's ability to cross-sell or upsell to these new customers as their financial situations improve over time.

Shanghai, China--(Newsfile Corp. - September 10, 2024) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao" or the "Company"), a leading and high growth InsurTech company primarily engaged in providing digital insurance brokerage services through its operating entities in China, today announced that Sunshine Insurance Brokers ("Sunshine"), one of the Company's subsidiaries, has won a contract to provide "Hui Jia Bao" (an inclusive homeowners' insurance product offered by the Company) ("Hui Jia Bao") in Nanjing, China. Marketed as "Ning Jia Bao" in Nanjing, this implementation of Company's Hui Jia Bao product is insured by a panel of six leading insurers, led by the People's Insurance Company of China ("PICC")'s Nanjing branch.

Hui Jia Bao is one of the Company's 40+ Digital Insurance Solutions; The Company first introduced the first project in Quanzhou, China in December 2023. Since then, the Company has deployed the "Hui Jia Bao" solution in nine other cities or regions in China. Nanjing is the capital of the prosperous Jiangsu Province and is home to over 9 million residents.

Starting at only CNY 99 per year, Hui Jia Bao is a "starter-level" insurance product, designed to provide homeowner's insurance coverage in cities around China. Through the Hui Jia Bao solution, the Company expects to fill a critical coverage gap in the insurance market in China by working with local government entities and insurers to bring down the barrier for millions of Chinese residents to obtain homeowners' insurance. In conjunction with "Hui Min Bao" (an inclusive medical insurance product), the Company is providing disadvantaged or low-income individuals and families with access to critical insurance coverage that might protect from severe financial hardship should an unexpected situation arise by offering more affordable and inclusive insurance products.

Management projects that the Hui Jia Bao solution will generate up to CNY 230 million in premium, and up to CNY 46 million in revenue to Company over the next three years.

"We are proud of securing this contract for the expansion of the 'Hui Jia Bao' Inclusive Homeowners' Insurance product. We are looking forward to providing innovative and important insurance products to the residents of Nanjing, assisting in closing the important coverage gap in our nation, and providing substantial revenue and profitability catalysts for our business," said Luo Xiao, General Manager of Sunshine.

"Our Hui Jia Bao and Hui Min Bao Solutions allow us to provide products and services that truly benefit and improve the lives of our customers and society, a key mission of our business" said Botao Ma, Founder, Chairman and Chief Executive Officer of Zhibao.

The Company is in continued discussions to launch the Hui Jia Bao and Hui Min Bao products additional cities in Jiangsu, Fujian, Yunnan, Qinghai, Shandong, Hebei, Guangdong and Guangxi over the next three years.

About Zhibao Technology Inc.

Zhibao Technology Inc. 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 more than 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 China Group acquire and analyze customer data, utilize big data and artificial intelligence technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep the Company abreast of the new trends and customer preferences in the market.

For more information, please visit the Company's website at www.zhibao-tech.com.

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.

Contact Information:

For Media and Investor Relations
Zhibao Technology Inc.
Investor Relations Office
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/222855

FAQ

What is the 'Hui Jia Bao' insurance product offered by Zhibao Technology (ZBAO)?

'Hui Jia Bao' is an inclusive homeowners' insurance product offered by Zhibao Technology, starting at CNY 99 per year. It's designed to provide affordable homeowner's insurance coverage in various Chinese cities, aiming to fill a critical coverage gap in the market.

How much revenue is Zhibao Technology (ZBAO) expecting from the Hui Jia Bao contract in Nanjing?

Zhibao Technology projects that the Hui Jia Bao solution in Nanjing will generate up to CNY 46 million in revenue for the company over the next three years.

Which insurance companies are backing Zhibao Technology's (ZBAO) Hui Jia Bao product in Nanjing?

The Hui Jia Bao product in Nanjing, marketed as 'Ning Jia Bao', is insured by a panel of six leading insurers, led by the People's Insurance Company of China (PICC)'s Nanjing branch.

What are Zhibao Technology's (ZBAO) expansion plans for the Hui Jia Bao insurance product?

Zhibao Technology is in discussions to launch the Hui Jia Bao product in additional cities across various Chinese provinces, including Jiangsu, Fujian, Yunnan, Qinghai, Shandong, Hebei, Guangdong, and Guangxi over the next three years.