The latest news on investment offerings, financial products and other services relevant to wealth advisors and their clients.

Insgeek, a Chinese insurance technology (“insuretech”) business, has completed its Series D round of financing, during which it raised several hundred million yuan on 22 September.

The investment was led by HR Tech Investments and China SME Development Fund Co, followed by existing shareholders Huaxing Growth Capital and SIG Asia Investment.

Previously, the company had closed several rounds of financing, raising about RMB400 million ($56.6 million) in total.

At the same time, Insgeek also launched its Group Insurance Digital Exchange platform to help facilitate the digital transformation of the group insurance sector.

As insurance policies are often used as tools in Asia for wealth management purposes, there’s an overlap between insurance technology and the wider wealth sector in the Asia-Pacific region.

Explaining the background market environment, Insgeek said that after more than 10 years of rapid development, China's individual health insurance market has started to experience declining growth rates, while group health insurance packages for employees have been gaining momentum and are beginning to grow rapidly. 

China's corporate group insurance segment, which has grown annually accounting now for 30 per cent of the health insurance market, is expected to approach RMB500 billion by 2026. Data shows that the US commercial health insurance market increased nearly 200 times to $867.5 billion from 1960 to 2017, of which 80 per cent was contributed by group insurance.

The firm said that despite rapid development, technology can deal with pain points such as the sheer complexity of group insurance.

“The newly-released GIDE will provide an open marketplace that will greatly reduce the entry threshold for brokers, agencies and insurers,” the group said.