Online insurance sale platform Xiaoyusan has teamed up with Ant Financial's Sesame Credit, a user data-based online credit scoring service, to incorporate personal credit system into the online insurance arena.
Under the system, those with good personal credit standing can enjoy lower insurance premiums. The system also helps financial service providers make credit decisions.
Launched in 2015, Sesame Credit, which is seen as an independent entity, generates credit scores based on the online behaviour of consumers and small businesses on Alibaba’s Taobao (consumer-to-consumer) and Tmall (business-to-consumer) marketplaces. The higher the credit score a person achieves, the more creditworthy he is considered.
Ant Financial is the financial services arm of Alibaba. There are more than 300 million real-name registered users and 37 million small businesses on Alibaba’s platforms.
Xiaoyusan hopes, through Sesame Credit, to identify groups of consumers with similar credit risk profiles so that insurance products can be designed to match premium rates and risks and to arrive at a fair rate for all.
Using Big Data, and partnering with Chinese insurance companies, Xiaoyusan, founded in 2015, relies on big data analytics to provide insurance tailored for certain groups of people.