Zhibao Technology Inc., a China-based insurtech company specialising in digital insurance brokerage, has announced the establishment of Zhibao Labuan Reinsurance Company Limited.
Labuan Financial Services Authority (LFSA) has granted Zhibao Labuan Re a license to pursue general reinsurance operations outside of mainland China on April 14, 2025.
The establishment of Zhibao Labuan Re will enable Zhibao to potentially unlock a new revenue stream through reinsurance premiums and underwriting profits derived from reinsured policies.
The company anticipates earning income aligned with local regulatory standards. For example, by accepting a 20% reinsurance risk from the Chinese insurance carrier on a policy where it typically earns a 20% commission, Zhibao could double its revenue potential on that policy, with additional potential for underwriting profits and proceeds from investment premiums.
“As a result, we believe Zhibao Labuan can open up a new revenue frontier for Zhibao. The target is for Zhibao Labuan to eventually participate in about a small portion of the total insurance premium generated by Sunshine Insurance Brokers and Zhibao Health,” Zhibao stated.
Botao Ma, Zhibao’s Chief Executive Officer, commented: “I believe Zhibao Labuan opens up a new frontier for revenue that presents unique opportunities to Zhibao. Additionally, I am excited about seeking to gaining access to the thriving insurance market in Labuan, Malaysia—a well-established, internationally regarded hub for insurance and reinsurance providers.
“With the formation of Zhibao Labuan, I believe we position ourselves as an innovator in an industry where it is traditionally uncommon for a brokerage company to establish a risk-carrying entity. Our upstream subsidiaries, which are intimately familiar with their customers’ needs and the underwriting terms of the policies, will participate in selecting the business for inclusion in Zhibao Labuan. This initiative not only provides a vote of confidence in the quality of our business but also aligns our interests with those of our insurance and reinsurance partners.”
He continued: “In cases where local insurance carriers are unable to meet the customization needs of our customers, Zhibao Labuan can leverage our accumulated data and deep market knowledge to lead on pricing and product development, ensuring that we deliver the highest quality and most appropriate products to our customers.
“Moreover, this new endeavour enhances our ongoing strategy to diversify our revenue streams and generate profitable market investments that we believe will drive shareholder value.”
