Why Invest in Huize
Huize at a Glance
In 2006, we launched our online insurance business under the “Huize” brand, and are now a leading digital insurance product and service platform for new generation consumers in China. We distribute insurance products underwritten by our insurer partners and help them reach a larger number of insurance clients.
Why Invest in Huize?
Dual-Engine Business Model Sustains Our Leadership. We operate as an independent intermediary platform with a dual-engine business model by 1) helping our insurer partners distribute their products to potential customers effectively and efficiently, and 2) providing potential customers with one-stop insurance solutions from online consultations and product recommendations to claims assistance services. The dual-engine “insurer-client” model forms a virtuous cycle that fosters a strong network effect, which strengthens our leadership position as a go-to gateway in China’s online insurance industry. As of the end of September 2023, we have partnered with 121 insurer partners, representing a substantial portion of all licensed insurance companies in China, and have cumulatively connected about 9.1 million insurance clients. In the third quarter of 2023, we facilitated total GWP and FYP of RMB1,245.1 million and RMB644.5 million on our platform, respectively.
Long-term Life and Health Insurance and Independent Insurance Platform as Our Niches. We specialize in offering long-term life and health insurance products through operating an independent insurance product and service digital platform. This renders us the highest growth potential among all products and channels in China. Leveraging our 16-year track record, insurance expertise, actuarial capabilities, risk management capabilities, and huge client database, we also co-develop tailor-made life and health insurance products with our insurer partners. In the third quarter of 2023, the GWP contribution of long-term life and health insurance products has remained above 90% for sixteen consecutive quarters.
Targeting the Lifetime Insurance Needs of New Generation Consumers. A substantial portion of our client base is from the younger generation. They are typically well-educated, tech-savvy, and have a strong preference for online transactions. In the third quarter of 2023, the average age of those who purchased long-term insurance policies through our platform was 33.9 years old. Our online open platform and extensive offline layout cover the entire insurance life cycle and provide insurance customers with a wide spectrum of products, one-stop services, and a streamlined transaction experience across all scenarios. Our data technology also supports the analysis of customer behavior, personal and family insurance needs, and risk pricing. As of the end of August 2023, the persistency ratios of these products in the 13th and 25th months have sustained at an industry-high level of more than 95%.
Revenue Generation without Underwriting Risk in a Cost-effective Way. We primarily generate revenues from the insurance brokerage fees paid by our insurer partners. As a licensed insurance intermediary operating an online platform, we do not bear underwriting risks. We believe by leveraging the Internet, technology, and our data analytics expertise, our business model enables us to reach the insurance retail market in a more cost-effective manner. In the third quarter of 2023, total operating expenses decreased by 26.7 year-over-year to RMB84.9 million and the gross profit margin increased by 6.0 percentage points year-over-year to 35.3%.
“Online Purchase; Offline Service” Strategy. Since our listing on the Nasdaq Global Market in February 2020, we have entered into the Business Strategy 3.0 era, focusing on “smart insurance”. Since 2022, we rolled out our “online purchase; offline service” strategy to strengthen our O2O integrated insurance service ecosystem. To facilitate online purchases, we are refining our operations with a strong emphasis on compliance and a strategic focus on acquiring, retaining and activating quality customers in order to drive upselling opportunities and optimize customer lifetime values. To provide offline services,we are empowering independent agents with innovative intelligent tools, real-time insights into customer behaviour, and efficient professional support. As present, we have successfully established regulatory-approved offline service teams in 18 key regions nationwide. In the third quarter, we upgraded our “Relink” with new functions providing automated opportunity identification and notifications, helping business consultants assist insurance agents more efficiently and effectively. We aim to build the most trusted brand of one-stop online insurance platform and become the go-to insurance service portal for young, middle-class families in China.