Today Alipay announced that its Xiang Hu Bao online mutual aid platform has attracted 50 million participants within six months. The company is targeting 300 million in two years. The application leverages Alipay’s blockchain technology.
Xiang Hu Bao translates to “mutual protection”, and Alipay is keen to emphasize it’s not a health
insurance plan and complements premium health insurance plans with broader coverage. Xiang Hu Bao protects participants against 100 critical illnesses, and if claims are approved, participants receive one-time payouts up to a maximum of RMB 300,000 (US$44,600).
For members, there are no premiums, purely contributions for payouts. The cost of claims is shared amongst members as a collective with Alipay taking an 8% cut. The fee needs to cover the cost of claims processing. Given it’s Alipay, one can imagine AI is an important tool in the claims process. Participants can exit the scheme provided they’ve contributed to any pending claims.
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Image Copyright: Alipay
