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NetEase brings Web-based car insurance to China (NTES, PNGAY, CHIX)

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Chinese Web company NetEase ( NTES , quote ) has partnered with Ping An Insurance ( PNGAY , quote ), China Pacific Insurance and others to launch Baoxian, an auto insurance comparison platform. The new portal adds a potentially lucrative purchase path for consumers in the fast-growing Chinese insurance market. This is obviously a potentially big venture for NTES. The Swiss Re Group recently estimated that the Chinese non-life insurance industry has grown 15% in 2011, and expects "enthusiastic competition" in the auto insurance market in 2012. China could be the world's second-largest insurance market in the next ten years. However, the industry is also grappling with the costs of a transition away from bank-based insurance sales. Many insurance companies are struggling to build a network of agents and the infrastructure that supports them. Despite being an smaller player in the market, Ping An has gotten a head start on the agency-based sales model and seems to be building on that lead by working with NTES on the new portal. If the portal takes off, NetEase is likely to benefit from the growth in the Chinese insurance market. Investors may also be interested in the Global X China Financials ETF ( CHIX , quote ), which carries several insurance companies in its portfolio.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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