Aaliance Insurance, the digital insurance business of ETAO International, has joined forces with Alibaba and Tencent to expand into the city-wide health insurance market in China.

It reached a comprehensive partnership deal with Ant Insurance, a division of Alibaba’s Ant Financial, and Tencent Weibo, a division of Tencent.

Through this partnership, the companies will mainly focus on the technology platform, health management, speciality drug supply and claims service, among others.

The focus would also be on intelligent customer service and promotion and operation.

Initially, the collaboration would be implemented in Zaozhuang, Anyang, Xiamen, Mianyang and other prefecture-level cities in China.

The pilot projects are aimed at expanding extended services to the city-wide health insurance market.

City-wide insurance is a new supplemental health insurance model that links basic public healthcare insurance products with commercially-offered insurance offerings.

The model is being jointly promoted by the Chinese government, insurance companies and third-party platforms.

The plan will automatically enrol all residents of a city if their municipal government joins the programme.

ETAO International Group chairman and CEO Wilson Liu said: “With the support of the two Internet, e-Commerce and technology giants, Alibaba and Tencent, ETAO would scale up the city-wide healthcare insurance service to China’s national market quickly.

“That in turn will speed up the development and market penetration of ETAO’s integrated healthcare services for Chinese customers.”

The Aaliance Insurance, headquartered in Shanghai, formed a strategic partnership with ETAO International Group in November 2021.

The partnership was aimed at giving patients access to ETAO’s medical services at an affordable price.