Suning Commerce Group's subsidiary Suning Appliance will establish an insurance company.
The new insurance sales company will have registered capital of CNY120 million and its main businesses will be selling insurance products and collecting premiums as an agent. Suning Commerce will invest CNY90 million in this company, while Suning Appliance will invest the remaining CNY30 million.
This is reportedly not the first time for Suning to tap the insurance sector. In August 2012, the company's e-commerce site Suning.com launched an insurance channel, which teams with Ping An Insurance, China Pacific Insurance and Taikang Life in sales of auto insurance, casualty insurance, health insurance, and property insurance.
A representative from Suning revealed that the first batch of its partners will cover more than ten insurance companies, including Taikang Life. In the future, the company will work with insurance companies to develop new insurance products which are available to both individuals and corporate customers, and finally create a risk solutions service platform.
So far, Suning's Internet financial businesses have launched third-party payments, small loans, insurance, and finance management services to Chinese consumers.