Manulife-Sinochem yesterday reached a strategic partnership with leading health care platform 111, Inc, the parent company of 1 Drugstore, to establish a health management ecosystem by integrating insurance with pharmacy benefits management and clinical services.
The move highlights the company’s footprint to make its mark in China’s burgeoning health care industry, and its ambitions to bring considerable growth to the insurance and online health care services industries.
Innovative business model
Manulife-Sinochem becomes the first in-depth partner for 111, Inc in the insurance field, while 111, Inc is the first online medical services provider for Manulife-Sinochem to build a large-scale strategic relationship.
Manulife-Sinochem and 111, Inc will establish a health management ecosystem integrating insurance with pharmacy benefits management and clinical services, allowing customers to manage their health more effectively and further expanding coverage.
Together, the two companies plan to co-develop the innovative “online pharmacy + health care insurance” business model, leveraging each other’s industry expertise and core capabilities to create differentiated offerings targeting specific user groups based on data analytics.
This model is a direct response to the increasing growth in China’s health care industry and the lack of quality in the primary care market, as well as scarcity and uneven distribution of valued medical resources.
The two companies will also co-market through their existing platforms, expanding health care coverage in China’s growing online health care sector.
“The strategic cooperation between Manulife-Sinochem and 111, Inc will build upon both parties’ strengths in medical insurance, health care management and data capabilities. Health is core to our company’s long-term strategy. Through this innovative partnership, we plan to integrate 111, Inc’s online pharmacy services into our health management platform to expand health care coverage and better serve the needs of our customers,” said Kai Zhang, CEO of Manulife-Sinochem.
Founded in 1996, Manulife-Sinochem is a joint venture between two Fortune 500 companies — Manulife Life Insurance (International) Co Ltd of Manulife Financial, and Sinochem Financial Co Ltd, a subsidiary of China Sinochem.
As the first foreign invested joint venture life insurance company in China, known for its trustworthy financial and insurance services and deep roots, Manulife-Sinochem has been a keen advocate of health and wellness.
Just having celebrated its 22nd anniversary last month, the company will continue to leverage its influence on health management with a flurry of innovative solutions and its customer-centric strategy.
Insurance meets healthy living
Throughout the health sector, Manulife-Sinochem has comprehensively deepened its development in China in four aspects: healthy living, disease prevention, mild diagnosis and treatment, and severe illness protection.
“China’s health care industry has seen significant growth, reaching a quantity of 8.6 trillion yuan in 2016, driven by increasing disposable income, rapidly aging population and a rising prevalence of chronic diseases,” said Zhang.
In response to these market challenges, China’s Internet giants and other rising online health care players (“healthtech”) have emerged in recent years to create a new marketplace differentiating traditional health care to address shortcomings, with 111, Inc taking lead in the pharmaceutical area.
The total revenue of China’s healthtech industry is projected to grow from 11 billion yuan (US$1.6 billion) in 2016 to 198 trillion in 2026, a compound annual growth rate of 34 percent.
“Despite the fast growth, there are numerous shortcomings including a lack-of-quality in the primary care market, as well as the scarcity and uneven distribution of valued medical resources,” Zhang noted.
As China is seeking models for commercial insurance to participate in social construction, technological innovation in the new era will be more empowered in the health insurance industry.
Insurance companies are taking steps to combine health products with online health care services in a personalized way to help customers manage their health effectively and further expand insurance coverage group.
Being a crusader for innovative insurance in terms of health management, Manulife-Sinochem takes technological advancement in the health insurance industry as a core element of its business success.
Protecting a healthy and sound financial future, the company is dedicated to enhancing the health and wellness landscape in China with a one-stop shop of diversified products and services, including disease prevention and treatment, full-time medical care and health management through its cutting edge MOVE program.
The introduction of the MOVE 2.0 program this year has redefined life insurance by rewarding customers with coverage for taking steps to stay healthy and active.
Integrated with the incredible fitness and health capabilities of the Apple Watch, the upgraded program is born out of a desire to provide an innovative insurance concept that encourages everyone to lead a healthy life.
As an active advocate and practitioner of the concept of healthy living, Manulife-Sinochem becomes NBA China’s first partner in the insurance category to share the commitment to promoting a healthy and active lifestyle among Chinese youth.
The NBA 5v5 tournament held this summer was the second-year partnership between NBA China and Manulife-Sinochem, which, for the latter, is a strategic move to step up its game in health management.
Through these projects, Manulife-Sinochem has positioned the “customer first” strategy in the center of all work, which is to promote innovation at customer touch points and values.
By listening to their needs, understanding their preferences and providing a superior experience for clients, Manulife-Sinochem can truly implement a customer-centric strategy and create differentiated and competitive customer value propositions.
“As a sustainable insurance company, Manulife-Sinochem takes full responsibility to provide longer-term protection for more and more people, which is guaranteed by the company’s sound business strategy and model, international vision and experience, and forward-looking innovative development,” Zhang said.