Chubb Ltd. announced it has entered into a long-term preferred provider distribution agreement with Suning, one of the largest and most recognized retail brands in China.
Under the terms of the agreement, Chubb and Suning will partner to develop and market personal and commercial general insurance products to Suning’s vast customer base through online channels.
Suning has 230 million registered e-commerce customers and 130 million registered members of Suning Yifubao, the company’s online payment processing platform, Chubb explained in a statement.
The initial product focus will include accident and health, travel, homeowners, personal device and package policies for small-to-medium-sized enterprises, Chubb said.
Suning operates close to 1,700 retail stores across mainland China and in Hong Kong and Japan, while its e-commerce platform, Suning Commerce, is the third largest in China, the company said, noting that in 2014 Suning became the first retailer in China to obtain a nationwide insurance agency license from the Chinese Insurance Regulatory Commission.
Chubb said it has a fully licensed property and casualty insurance company in China, which offers commercial P&C and group personal accident insurance coverage to local Chinese businesses and multinational companies with Chinese exposures.
“China represents a significant long-term growth opportunity for Chubb and we are delighted to partner with Suning, a retailing giant with a distinguished brand, a national footprint, significant marketing expertise and a multi-channel sales model with a large and growing online platform,” said Evan G. Greenberg, chairman and chief executive officer of Chubb.
“With this distribution agreement, Chubb will bring to bear its unmatched insurance expertise and experience – from product design, underwriting, data analytics and claims to state-of-the-art direct marketing capabilities and a long track record of successful partnerships with leading sponsor organizations globally – to deliver exceptional insurance coverage and service to Suning’s customers,” Greenberg said.
“Our near-term focus is working closely with Suning to develop custom-designed products and marketing initiatives to maximize the scale and profitability of our partnership,” he added.
Zhang Jindong, chairman of Suning Holdings Group, commented: “Our distribution agreement with Chubb provides Suning an opportunity to further enhance the customer experience with innovative and personalized services.”
Zhang noted that Suning is an “offline-to-online (O2O) model pioneer” with a massive member base, a multi-channel online and offline network as well as strong sales and service capabilities, and a well-developed information system.
“These capabilities, along with our own experience offering innovative insurance products, are an excellent complement to Chubb’s leadership and proven experience in both personal and commercial general insurance,” he said. “Together, we will offer our customers convenient access to insurance coverage that meets their needs.”
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