Insurance giant China Pacific Insurance has unveiled plans to establish its own fintech subsidiary.
A meeting of the China Pacific Insurance board passed a resolution on the evening of 21 July to invest in the establishment of a fully-owned fintech company with registered capital of 700 million yuan (approx. USD$99.74 million).
The fintech subsidiary will go by the name “Pacific Insurance Fintech Co., Ltd.” (太保金融科技有限公司).
Sources said that Pacific Insurance Fintech will position itself as the “market-based operator” for the China Pacific Group, undertaking relevant tech operations for its various subsidiaries.
In recent years China’s large-scale traditional insurers as well as online insurers have sought to expand their fintech operations via the establishment of their own subsidiaries or equity investment in existing companies.
Analysts say these measures are for the purpose of better integrating their own operations with online business models, or even providing their technical services to third parties.