Zhibao Technology opens reinsurance unit in Labuan for expansion

It expects Zhibao Labuan to act as a minority risk taker for selected businesses.

Digital insurance brokerage firm Zhibao Technology announced the establishment of Zhibao Labuan Reinsurance Company Limited.

The newly formed entity received a license from the Labuan Financial Services Authority on 14 April, allowing it to conduct general reinsurance operations outside mainland China.

Through reinsurance, Zhibao aims to earn premiums and potentially generate underwriting profits. 

The company expects Zhibao Labuan to act as a minority risk taker for selected businesses, mainly supporting operations from Sunshine Insurance Brokers and Zhibao Health.

According to the company, if Zhibao typically earns a 20% commission on policy sales and Zhibao Labuan assumes an equivalent portion of reinsurance risk, the potential exists to double revenue on such policies whilst also gaining from investment returns on collected premiums.

CEO Botao Ma stated that the formation of Zhibao Labuan positions the company to access new profit avenues in Labuan, Malaysia—a recognised international insurance and reinsurance hub.

He noted that this move enhances Zhibao’s ability to offer tailored insurance solutions, especially in cases where local carriers fall short of meeting customer requirements.