China based online insurance company Xiaoyusan has raised $14m in Series B funding led by Matrix Partners China and Tianshili Capital. Founded in 2015, Xiaoyusan provides life insurance for the elderly, children and the adults based on big data analytics.
Similar to elsewhere and other industries, Chinese consumers are moving online to purchase insurance products. A total of 117 insurance companies provided online insurance services in 2016, underwriting a total of RMB234 billion worth of insurance products. Around 6.2 billion of insurances were newly added in 2016, of which 64.6% were purchased online, according to Chinese media reports. As such, venture capitalists have been backing online insurance start-ups in order to capture the sector's growth. Aside from Xiaoyusan, Huize Insurance raised a RMB200 million (US$31 million) series B round from a number of Chinese investors in March 2016. Chinese alternative investment firm Hillhouse Capital Group also joined global insurer Allianz and Chinese Internet giant Baidu Inc to establish an online insurance company in China in 2015.