Chinese news app Toutiao is looking to acquire an insurance broker in China to enter the insurance business, but without having go through the time consuming process of obtaining an insurance licence.
The move would follow on the heels of Chinese tech giants— Baidu, Tencent and Alibaba, collectively known as the BAT—which recently obtained insurance licences through broking or agency units for their online platforms, reported China Money Network.
Toutiao ranks as the fifth highest valued private company on China Money Network’s Unicorn Ranking with a valuation of US$20 billion. The company, which uses artificial intelligence to provide customised news for its users, claims to have over 700 million users and 150 million monthly active users.
With its broad customer base and precision advertising, selling insurance online could become a significant new revenue source for the company. It is estimated that Toutiao made around US$904 million in advertising revenues in 2016.