Taiwan's Fubon Financial Holding Co. Ltd. will form a Shenzhen-based joint venture with Chinese tech giant Tencent Holdings Ltd. to sell insurance policies, Taiwan's United Daily News reported July 19, citing Fubon Financial Chairman Richard Tsai.
Fubon Financial's China-based unit, Fubon Property & Casualty Insurance Co. Ltd., will develop innovative insurance products with Tencent and sell policies through the latter's social media platform, WeChat, Tsai said.
The joint venture is awaiting Chinese regulators' approval and Fubon Financial has dispatched more than 20 people to Shenzhen to prepare for the new joint venture, the chairman added.
The joint venture will not be the first collaboration between a Taiwanese financial group and a Chinese tech giant in the insurance industry. In 2016 Alibaba's affiliate, Ant Financial Services Group, became the biggest shareholder of Cathay Financial Holding Co. Ltd. unit Cathay Insurance Co. Ltd. (China) after purchasing a 51% stake for 833 million yuan.
Tsai said Fubon Financial is also developing other technologies with other partners, including those related to robo-advisory, blockchain, supply chain finance and the Internet of Things.
As of July 19, US$1 was equivalent to 6.76 Chinese yuan.