More Healthcare, Announces Series C Financing Near CNY 500 Million
COVID-19 and China
People discussing possible plans. Photo: credit to Miaojiankang

On April 2nd, 2019, the AI healthcare data company, More Healthcare (Miaojiankang, 妙健康), announced the completion of its series C financing of nearly CNY 500 million (USD 74.63 million). China Pacific Insurance Company Endowment Fund (太平洋保险养老投资), China Pacific Insurance Company Healthcare Fund (太平洋保险医疗健康), and Xiran Capital (翕然资本) jointly invested in this round.

More Healthcare was founded in 2015, and dated now, it has received four rounds of financing series. In its series A funding, More Healthcare received of CNY 100 million (USD 14.9 million) from River Head Capital (融汇资本) and CNY 350 million in series B and series B+ led by Citic Capital (中信资本) and followed by Nongyin Wuxi (农银无锡) capital and Jiangzhong Fund (江中中药基金). The total financing amount is nearly CNY 1 billion (USD 149 million) from the four rounds of investments.

Claimed as an AI + healthcare data company, More Healthcare provides healthcare tracking and management solutions. From its investors, a large portion of investors is from the insurance industry and healthcare-related corporates. Healthcare management driven by data does not only help individuals but also insurance companies.

Healthcare data can provide insurers fundamental statistics related to customers, and insurers can improve or create new insurance data to provide better services. Insurance’s development is a critical component in national healthcare development. As released by the government’s 2017 annual work report, Chian’s social security would face a financial deficit in amount of CNY 735.3 billion (USD 109.7 billion) by the end of 2024. Social security can only satisfy the basic welfare and insurance is a better means to meet individuals’ need.

Adverse selection, which happens frequently but is not ethical, is a negative risk faced by almost all insurers when entering an insurance contract. Insurers and insurance buyer do not have the same knowledge of certain things that might affect the fairness of the business. Healthcare data company’s existence helps to eliminate the information asymmetry situation. Based on this understanding, it is not difficult to explain why many of More Healthcare’s investors are insurers.

The healthcare data tracking helps to eliminate the information gap between insurers and insured population, and healthcare management assists insurers to control risks, i.e. people who have comparatively poor healthcare management might face higher insurance costs due to his increased risks and inversely, people have has comparatively better healthcare management is a lowered risk pool for the insurers and insurers can accordingly cut off the rates of this pool’s insurance plan.

More health inclines that it is in the process of cooperating with insurers to develop interactive insurance products. The product’s rate might fluctuate along with time depending on the healthcare management level of the insured. Insurance, an industry relied on data, is benefiting from the bid data era and hence able to demonstrate its social function as a supplement of social security.

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