"New forces in car manufacturing" Xiaomi obtains insurance license; new players enter the car insurance market
Xiaomi Corporation has become a significant shareholder of Beijing Fibatai Tianxing Property Insurance through its subsidiary, Tianxing Technology, officially obtaining a property insurance license, marking an acceleration in its financial sector layout. The company, jointly established by Paris-based AXA Group and Volkswagen Financial Services, is the 23rd foreign-funded property insurance company in China. Xiaomi's financial business has been gradually integrated since 2018, now covering multiple areas including loans, payments, consumer credit, and more
Insiders revealed that Xiaomi Group will hold shares in this property insurance company through its subsidiary, Tianxing Digital Technology, becoming a significant shareholder.
A seemingly unrelated news has fulfilled Xiaomi's ten-year insurance dream - Xiaomi Group, which has been laying out in the financial sector for many years, is expected to obtain a property insurance license.
Recently, Li Yunze, Director of the China Banking and Insurance Regulatory Commission, revealed at the 2024 Financial Street Forum Annual Meeting that the regulatory authority has officially approved the preparations of two foreign institutions, Beijing Fabatianxing Property Insurance Co., Ltd. (preparation) and American Prudential Insurance Asset Management Co., Ltd. (preparation).
Among them, Beijing Fabatianxing Property Insurance (preparation) is jointly established by French Paris Insurance Group and German Volkswagen Financial Services Overseas Company, making it the 23rd foreign-owned property insurance company in China.
Insiders revealed that Xiaomi Group will hold shares in this property insurance company through its subsidiary Tianxing Digital Technology, becoming a significant shareholder. Zhang Guowei is set to be the General Manager of Fabatianxing Property Insurance (preparation). Public information shows that Zhang Guowei, born in 1976, has previously served as Vice President of Hyundai Property Insurance, Bohai Property Insurance, and Anbang Life Insurance.
1
Xiaomi Accelerates Layout in the Financial Sector
Against the backdrop of deepening opening up in the financial industry, Xiaomi Group's layout in the financial sector is accelerating.
Enterprise Check data shows that Tianxing Digital Technology was established in December 2013 with a registered capital of 2.314 billion RMB, indirectly wholly owned by Xiaomi Finance (Hong Kong) Limited. As a digital technology service platform under Xiaomi Group, Tianxing Digital Technology plays a core role in Xiaomi's overall strategy.
Xiaomi Group's layout in the financial sector can be traced back to 2018. That year, Xiaomi disclosed in its prospectus the plan to integrate and establish Xiaomi Financial Group. Subsequently, "Xiaomi Finance" was renamed "Xiaomi Digital Technology" and renamed again to "Tianxing Digital Technology" in 2020.
Compared to other internet giants, Xiaomi Group's financial layout appears relatively focused. Its core business mainly revolves around loans and third-party payments, expanding into consumer credit, internet finance, internet insurance, supply chain finance, financial technology, virtual banking, and other sectors based on the Xiaomi ecosystem. Currently, Xiaomi has obtained multiple financial licenses including Chongqing Xiaomi Consumer Finance, Hong Kong virtual bank Tianxing Bank, and Sichuan Xinwang Bank.
2
Is the Car Insurance Market Facing a Pack of Wolves?
In fact, Xiaomi's presence in the insurance sector has been evident for some time. In January 2016, Xiaomi acquired Beijing Hongyuan Insurance Brokers Co., Ltd. through its subsidiary Sichuan Yinmi Technology Co., Ltd., renaming it Beijing Houjibao Insurance Brokers Co., Ltd.
In March 2021, Xiaomi Group announced its official entry into the electric vehicle industry. This strategic move not only expanded Xiaomi's business scope but also brought new opportunities for its financial business, especially the insurance business. In March of this year, after launching the Xiaomi SU7 new energy vehicle, Xiaomi announced a partnership between Houjibao Insurance Brokers and Cheche Technology to provide car insurance services solutions for car owners in various cities across China, including Beijing, Shenzhen, and Hangzhou According to reports, Tianxing Digital Technology's major goal in establishing a property insurance company with French Paris Insurance Group and German Volkswagen is to enter the Chinese car insurance market. This not only aligns well with Xiaomi's car-making strategy but also reflects Xiaomi's long-term layout in financial ecosystem construction.
In May last year, regulatory approval was granted for BYD Auto Industry Co., Ltd. to acquire 1 billion shares of Yian Insurance, holding a 100% stake and establishing BYD Insurance, which replaced Yian Insurance as one of the four professional internet insurance companies in China. In September 2023, regulatory approval was granted for BYD Insurance to increase its registered capital by 3 billion yuan, changing from 10 billion yuan to 40 billion yuan. In November of the same year, regulatory approval included compulsory motor vehicle accident liability insurance and motor vehicle commercial insurance in BYD Insurance's business scope. In May of this year, the China Banking and Insurance Regulatory Commission approved BYD Insurance to use nationally unified compulsory insurance terms, basic insurance rates, and corresponding rate fluctuation factors in Anhui, Jiangxi, and other regions.
Following BYD, Xiaomi entered the car insurance business, with leading new energy vehicle companies successively obtaining insurance licenses, raising public expectations for improved quality and reduced premiums in new energy vehicle insurance.
Is the car insurance market about to see fierce competition? Xiaomi's strong alliance with two foreign giants has opened up new possibilities for the future development of the domestic car insurance market