Credit insurance helps boost consumer finance by filling information gap, insider says
Cedit guarantee insurance is boosting China’s consumer finance sector.
Wang Ying, managing director of the department of institutional finance at ZhongAn Online P&C Insurance Co said credit guarantee insurance functions as both a connector and a stabilizer.
This September, the State Council or China’s Cabinet, issued policies to encourage insurers to strengthen cooperation with banks and consumer finance companies and develop more innovations for consumer finance.
ZhongAn said in its 2017 annual report that it has partnered with internet finance platforms such as Xiaoying and Lexin as well as consumption platforms such as Mogu Street.
Based on its strong knowledge of risk control, the underwriter protects capital security and better serves the individuals’ consumer financing needs.
ZhongAn said it has built an open platform for sharing financial technology and empowered all participants in the consumer finance chain. The three core capabilities are intelligent risk control, smart marketing and intelligent asset matching.
Data from consulting firm iResearch showed that the nation’s consumer finance lending jumped by nine-fold to hit 4.4 trillion yuan (US$640 billion) from 2016 to 2017.
However, due to the low penetration rate of consumer credit, the country’s consumer finance sector is still in its early stage and there remains much room for further development, industry watchers said.