Fosun United Health Insurance Company ( FUHI ), one of China’s seven specialized health insurance companies, has secured equity investments from multilateral institutions to expand commercial health insurance coverage and strengthen long-term care services in the country. The investments will also enhance the company’s solvency level and support its business expansion.

The Asian Development Bank ( ADB ) invested 270 million yuan ( US$37.3 million ) in FUHI, with the International Finance Corporation ( IFC ) and Shanghai Fosun Pharmaceutical ( Group ) Company both investing an equivalent amount. The project marks ADB’s first-ever direct equity investment in the insurance sector. FUHI received regulatory approval for the issuance of shares to ADB on September 22.

ADB country director for China Asif Cheema says the bank’s investment in FUHI will help strengthen the commercial health insurance market in China, providing essential coverage for medical and long-term care needs, particularly for the elderly and women. “This project underscores our commitment to inclusive and sustainable development, ensuring that vulnerable populations have access to affordable and comprehensive health insurance,” he adds.

China’s rapidly ageing population poses challenges in providing adequate and financially sustainable care. By 2035, according to ADB, an estimated 400 million people in China will be aged 60 or older, accounting for 30% of the population. Women face bigger hurdles in accessing insurance because of low financial literacy and informal employment, leaving them more vulnerable to health risks that can lead to poverty. FUHI’s expansion will complement public health insurance by offering products tailored to women’s needs, improving financial literacy, and integrating resilient health solutions.  

To enhance the development impact of the project, FUHI will invest in green bonds equivalent to 55% of ADB’s equity investment. FUHI will also enhance its digital claims processing, introduce financial literacy programmes for women, and implement workplace policies to advance gender equality and disability inclusion. ADB will have the right to nominate a board director to strengthen FUHI’s corporate governance framework.

This collaboration will provide robust support for FUHI’s strategic transformation and lay a solid foundation for high-quality development. The ADB says the partnership with FUHI will advance social equity through innovative insurance products, such as offering enhanced protections for children, women, and the elderly, which also aligns with FUHI’s operating commitment and dedication to social responsibility.

Established in 2017 as the sixth professional health insurance company in China, FUHI adheres to the mission of “prioritizing healthy development, distinctive operations, innovation-driven strategies, and superior customer experience”. FUHI has built a comprehensive product and service ecosystem anchored in “innovation, professionalism, and differentiation”, including but not limited to medical insurance, critical illness insurance, nursing care insurance, and accident insurance. The company expects to become a leading expert in lifecycle health management in China.