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Ping An seeks perfecting healthcare ecosystem to grab market potential

By Zhou Mo in Shenzhen | chinadaily.com.cn | Updated: 2020-09-22 20:44
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The Ping An logo. [Photo/Agencies]

Ping An Group is ramping up efforts to perfect its healthcare ecosystem as the insurance giant sees huge market potential emerging from the sector and pins hope on the "synergy effect" it could create to promote its main financial business.

The Shenzhen-based company said its healthcare ecosystem will focus on five areas – government, patients, providers, payers and technology.

For example, Ping An Smart Healthcare mainly serves the government, while Ping An Good Doctor, a Chinese leading online health service provider, targets patients and online medical services providers.

"The healthcare ecosystem is one of our long-held strategic focuses," Jessica Tan, co-CEO of Ping An Group, said in Shenzhen on Tuesday. "We hope to create a strong technology barrier by establishing a closed cycle of medical services."

The company is dedicated to supporting the country's "Healthy China 2030" initiative and promoting Chinese people's health, she stressed.

Tan said one of the major reasons behind Ping An's determination to build the healthcare ecosystem is the huge market potential in the healthcare sector.

"The market size of the Chinese healthcare sector is expected to grow from 6 trillion yuan ($884 billion) in 2019 to 16 trillion yuan by 2030. Moreover, the government is supportive of the sectors' growth," she said.

She also believes the healthcare ecosystem could help promote the company's main business in finance, creating "synergy effect".

About 15 to 20 percent of Ping An's new retail financial services customers come from its healthcare ecosystem and the assets under management for each customer are averaged at 10,000 yuan By comparison, the assets under management for a customer with no links to the healthcare ecosystem is 5,600 yuan.

Tan said the "synergy effect" between the company's healthcare ecosystem and main financial business will be reflected in more aspects, including product, traffic flow, service, technology and cost, in the future.

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