(YicaiGlobal) Feb. 17 — Zhonghui Property Mutual Insurance Society has received a business license, becoming the first mutual insurance society in China. China’s insurance regulator approved and issued a business licence to the society in only 240 days, said the company’s chairman.
Zhonghui, which will operate as a mutual insurance society, a form of insurance organization with hundreds of years of history in other countries, is expected to use today’s technology to explore a Chinese-style development mode.
It took China Insurance Regulatory Commission (CIRC) only 240 days from the day of first application for establishment to issue a business license, said the society’s founder and chairman Li Jing in an interview with Yicai Global and other media representatives.
“Only by pairing with internet and fintech can mutual insurance organizations achieve success,” said Li. In addition to the application of new technologies, mutual insurance organizations also need to find the most suitable industrial scenarios. Zhonghui hopes to explore a new path for serving small and micro businesses, Li added.
“Zhonghui will focus on credit insurance,” Li noted. “The essence of credit and guarantee insurance is credit collection. We will employ big data to improve our risk management competency through data accumulation, data analysis and risk pricing to provide services for small and micro businesses.”
As for target customer base, Li revealed that Zhonghui will focus its efforts on logistics, fast moving consumer goods and other specific industries and that it will promote business development in a prudent manner.
A mutual insurance company is owned entirely by its policyholders. Mutual insurance refers to a behavior of reciprocal insurance. Members pay premiums to establish a fund pool against risks on an equal and voluntary basis. When disasters or losses occur, the capital is used to make up for losses.
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