Ant Financial's mutual aid platform providing basic health plans is on track to meet its goal to serve more than 20 percent of China's population.
Ant's Xiang Hu Bao, which means mutual protection, has attracted over 50 million people since the launch of the online product in October last year, according to a press statement on Thursday. The company said it hopes to sign up 300 million Xiang Hu Bao users within two years, representing over 20 percent of China's population.
The product lets members contribute evenly to a pool and then lets them claim payouts up to 300,000 yuan (S$60,500) should they meet with critical illness. Xiang Hu Bao allows its members to enjoy protection «for free» as long as they meet certain credit requirements. When a policy-holder falls ill, members in the plan then «lend a helping hand» by sharing medical expenses. A member may also receive assurance cash.
Unconventional Health Plan
Anyone between the age of 30 days and 59 years can join the product plan, provided they meet basic health criteria. The plan, which covers around 100 ailments, help spread the costs of payouts more widely as participant numbers increase. With a growing user base, each member should pay no more than 0.1 yuan ($0.015) for every critically ill person, according to Ant.
Unlike other health plans, disputes about claims are adjudicated by volunteer members. In return for managing the process, Ant will take an 8 percent administrative fee out of every payout. Previously, China's regulators warned the company about misleading product promotions and insufficient information disclosure, according to a report on China.org.cn.
