BILLIONAIRE Jack Ma’s Ant Financial has done more than perhaps any company to disrupt China’s gargantuan banking and asset management industries. Now it’s trying to re-imagine health insurance. Ant Financial’s Xiang Hu Bao, which means mutual protection, has attracted 50 million people since its October inception, or more than five times the population of New York City. The product operates somewhat like a collective, in which members contribute evenly to payouts of as much as 300,000 yuan (US$45,000) when a participant falls critically ill. It’s free to sign up, there are no premiums or upfront payments, and disputes about claims are adjudicated by volunteer members, according to a statement from the company Thursday. In return for managing the process, Ant Financial will take an 8 percent administrative fee out of every payout. Ant Financial, best known for the Paypal-like Alipay service that underpins Alibaba Group Holding Ltd.’s online shopping platform, is re-designing financial products from money market funds to consumer credit. The firm’s foray into health care comes at a time when the country is grappling with a rapidly aging population, one of the more pressing long-term threats to China’s economy. Ant Financial said Thursday it hopes to sign up 300 million Xiang Hu Bao users within two years, which would represent more than 20 percent of China’s population. (SD-Agencies) |