Why Invest in Huize

We are a leading independent online insurance product and service platform in China that is not affiliated with insurance companies or other insurance industry participants. Targeting the younger generation, we are dedicated to serving our client’s life-long insurance needs. As of December 31, 2019, we cooperated with 70 insurer partners, representing a substantial portion of all licensed insurance companies in China. In 2019, we offered approximately 279 life and health insurance products and approximately 1,073 property & casualty insurance products. We have cumulatively connected 6.3 million insurance clients and 53.2 million insured. Our mission is to transform the way insurance policies are distributed and to become the go-to gateway for younger generation in China’s online insurance industry.

China’s Rapidly Increasing Online Insurance Market

China has become the second largest insurance market in the world since 2015 (measured by GWP). The size of China’s insurance market has increased rapidly from RMB1.7 trillion in 2013 to RMB3.8 trillion in 2018, representing a CAGR of 17%. It is projected to reach RMB6.9 trillion by 2023, representing a CAGR of 13% from 2018 to 2023. Long-term life and health insurance and independent insurance product and service platforms, two of the aspects we focus on, have the highest growth potential among all products and channels.

Our Dual-Engine Business Model

As a licensed insurance intermediary operating an online platform, we do not bear underwriting risks. Through serving and supporting both insurance clients and insurer partners, we operate as an independent platform with a dual-engine business model.

We distribute insurance products on our platform that are underwritten by insurance companies we cooperate with. As we gain insurance clients, we help insurance companies increase the number of purchasers of insurance products. Meanwhile, we provide insurance clients with high-quality client services, including suitable product recommendations and consulting services. We believe that through leveraging our internet, technology, and data analytics expertise, our business model enables us to reach the insurance retail market in a cost-effective manner.

The dual-engine of “insurer-client” forms a virtuous cycle that brings a strong network effect. This strengthens our leadership position as a go-to gateway in China’s online insurance industry.

Leading Position and Quality Client Base

We were the largest independent online long-term life and health insurance product and service platform in China in 2018, as measured by total GWP. We offer insurance clients a seamless experience of accessing a wide spectrum of attractive insurance products. Our closed-loop online platform covers the entire insurance life cycle, and provides insurance clients with one-stop services and a streamlined transaction experience.

We focus on serving the younger generation who are relatively well-educated, tech-savvy, more willing to learn insurance related knowledge, and tend to enjoy online consumption and investment. In 2019, the average age of those who purchased life and health insurance products through our platform was 32.

Innovative Technology and Massive Client Intelligence Data

After 14 years of operations, we have accumulated a large amount of multi-dimensional user data. Our data technology supports our analysis of client behavior, personal and family insurance needs, and their feedbacks to the products and services we provide, which is the basis of our client value exploring initiatives and various client service tools.

Our proprietary technology platform supports our rapidly growing processing capacity requirements, provides us with detailed and accurate information collected through our operation, and enables harnessing of insightful data analytics with big data capabilities. Our proprietary algorithms are embedded in all critical operational areas, including but not limited to insurance product recommendation, intelligent underwriting, pricing range suggestion and claim settlement services.

Outstanding Risk Management and Product Customization Capabilities

We have been among the first to develop and launch the intelligent underwriting system, which coded the underwriting criteria set by each insurer partners we cooperate with, and is reinforced by cumulative underwriting and claim data. Utilizing algorithms and machine-learning techniques, our system greatly reduces the risk of adverse selections and the difficulties for online risk management.

We stay abreast of market trends and have deep insights into the unmet needs of insurance clients. To address such needs, we cooperate with our insurer partners to design and develop tailor-made insurance products. This contributes significantly to the GWP we facilitate, and, in addition, to our revenues from commission fees. In 2019, approximately 36.3% of the GWP facilitated through our platform were contributed by tailor-made insurance products that we developed together with our insurer partners.

Strong Financial Performance

We have experienced substantial growth since our inception. Our total operating revenue increased by 95.2% from RMB508.8 million in 2018 to RMB993.3 million (US$142.7 million) in 2019. Our adjusted net profit increased by 417.2% from RMB30.1 million in 2018 to RMB109.9 million (US$15.8 million) in 2019.

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