China’s first insurer for tech is born after Taiping Technology Insurance is given go-ahead
The company will have a registered capital of 500 million yuan
Taiping Technology Insurance, a unit of China Taiping Insurance Group, has received the go-ahead from China’s top insurance regulator to open for business, making it the country’s first insurance company specialising in services for the technology sector.
The China Insurance Regulatory Commission said on Tuesday it had approved the insurer’s launch and it will have a registered capital of 500 million yuan (US$76.6 million).
Taiping Technology will offer coverage to technology enterprises for property, engineering, liability, cargo, short-term health and unforeseen injury, special risk, and credit and guarantee insurances.
The company can also provide relevant reinsurance services and conduct other businesses permitted by the regulator, the commission said.
Li Jinfu, a former vice-chairman at China Taiping Insurance, will serve as the legal representative of Taiping Technology, and the company will be based in Jiaxin city, in China’s Zhejiang province.
The unit has nine founding shareholders, including Taiping General Insurance, Zhejiang Finance Holdings, Zhejiang Expressway, Zhejiang Technology Venture Capital, Zhejiang Xinghe Group, Honwa Leasing, Zhejiang Xingke Technology Development Investment, Jiaxing Gas Group and Zhejiang Zhehua Investment.
China has been encouraging insurers to provide services to the country’s tech ventures for more than a decade now.
In 2006, the regulator and the Ministry of Technology jointly issued a guidance and raised the concept of insurance for technology. The authorities also launched pilot projects at China Export and Credit Insurance and Huatai Insurance, allowing them to offer solutions for technology ventures.
In 2014, the State Council said in a separate guidance that it would enhance the government’s support for the country’s insurance for technology business, to boost innovation and the commercialisation of scientific and technology achievements.
China Taiping Insurance is not the first in China to have applied for the set up of a specialised insurance company for technology. Last February, the China Insurance Regulatory Commission rejected a similar request by Suzhou High-Tech Venture Capital Group to establish Kechang Science and Technology Insurance.
The regulator cited a “lack of feasible business model”, “unclear definition of insurance for technology”, “inaccurate estimation of business and profitability measures”, as well as its doubt about the financial strength of the founding shareholders when it rejected the Suzhou application.