SHANGHAI, Jan. 18, 2024 /PRNewswire/ — Leapstack, a prominent insurtech company, recently secured an impressive 200 million RMB yuan in Series C+ Funding, led by Qiming Venture Partners. The funding round also saw active participation from Soochow Yihe Capital, and existing shareholder Legend Capital, with exclusive financial advisory services provided by MountainView Capital. As a technology-driven enterprise, Leapstack specializes in cutting-edge digital solutions for medical insurance. The company offers comprehensive digital solutions catering to government health insurance departments, commercial insurance companies, medical/nursing institutions, as well as pharmaceutical and medical device companies, among other enterprises.
Since its establishment in 2016, Leapstack has successfully completed multiple funding rounds, boasting a robust shareholder portfolio that includes Gaorong Capital, Fomou Assets, DCM, Puhua Capital, Danhua Capital, Lingfeng Capital, FinVolution Group (NYSE: FINV), Uphonest Capital, 360 DigiTech (NASDAQ: QFIN), Legend Capital, Peakview Capital, GF Qianhe Investment and Huazhi Capital, etc.
The growing urbanization, changes in the aging population structure, as well as the increase in both medical expenses and health insurance awareness, have resulted in the continuous rise of rigid demand for health insurance in China. In this context, the insurance industry, especially health insurance, is undergoing the digital transformation, with an active participation of technology enterprises in becoming more “automated.” Technologies like artificial intelligence and big data are changing the entire value chain, including product development, pricing, distribution, operations, underwriting, and claims processing. In 2022, the premiums for health insurance in China reached 865.2 billion yuan. Such a substantial market size underscores the essential need for corresponding digital services, making it imperative for insurtech enterprises to seize opportunities strategically. In addition, it attracts attention from all parts of the industry towards how to accelerate a successful digital transformation of medical insurance and commercial insurance.
Taking the innovation and expansion of business as an example. With the continual exploration and implementation of cutting-edge technologies and the dynamic shifts in consumer trends, new consumer demands are driving fundamental changes in health insurance types, product content, business models, and industry ecosystems. As one of the technology enterprises that started digital transformation of health insurance early, Leapstack has consistently prioritized cost control and digital services at the core of its business strategy. On one hand, Leapstack has developed an intelligent audit system. Through the establishment of an in-house medical insurance fund supervision team, it employs a smart online audit + random offline inspection to serve as a robust safeguard for the public’s medical expenses. On the other hand, for digital services, Leapstack furnishes commercial insurance enterprises with an all-encompassing digital platform. Leveraging its in-house automated operation engine, seamlessly integrated with big data risk analysis, Leapstack establishes a closed loop of efficiency and fee control. This empowers the entire insurance claims process, resulting in reduced costs and increased efficiency.
It is reported that Leapstack has been actively involved in the medical insurance supervision programs led by the government, including major supervision programs for medical insurance fund at the national or provincial level, the operation welfare projects in dozens of cities, and the operation services for long-term care. Up till now, it has served medical insurance bureaus and relevant regulatory agencies in over ten provinces and 100+ cities across the country, allowing the public to access more convenient, fair and accessible medical insurance services.
In comparison to a decade ago, the insurance industry has undergone a revolutionary transformation in digitization. With the growth of the health insurance market and policy incentives, there is an increasingly prominent application demand for big data, cloud computing, robotic process automation (RPA), and large-scale modeling technologies in this sector. Leapstack, holding its position in the development, dedicates itself to health insurance. It pioneers the model of “digital risk control for health insurance,” effectively facilitating the digital integration of policy-based medical insurance and commercial health insurance. By bridging actuarial, product design, underwriting, claims process, customer service, and other operational processes, it achieves collaborative dynamic risk control throughout the product lifecycle. Such digital empowerment facilitates innovative product design, rational pricing, and refined operations.
Over several years of dedicated development, Leapstack has centered its efforts on addressing the specific needs of the insurance business. This commitment has culminated in the comprehensive creation of a range of data products, including a big data risk control system for health insurance, a processing system for long-term care insurance, a service system for critical illness medical insurance, a claims system for commercial health insurance, and a chronic disease management system for health insurance. As Leapstack empowers digital services in government medical insurance and commercial insurance through technological advancements, it is concurrently pursuing expansion into the medical care and health industry. Through the integration of the enterprise, medical, and pharmaceutical scenarios, and the connection among quality medical resources, Leapstack aims to achieve effective access to quality medical services and innovative diagnosis and treatment solutions. By innovating payment methods, Leapstack contributes to the enhancement of effective and quality medical services, progressively improving health guarantees.
In response to the expanding market and rapid business growth, Leapstack has successfully concluded product development and solution construction for various business scenarios. At the same time, as a pioneer in China’s insurtech sector exploring international markets, Leapstack has launched its business in Vietnam, Indonesia and other markets over the past two years. As outlined in its strategic roadmap, Leapstack envisions a substantial expansion of its overseas business over the next three to five years. Leapstack is poised to make an entry into the Thai and Singaporean markets, aiming to spearhead technological integration throughout the entire Southeast Asian region through the implementation of innovative business models. Throughout the process of high-quality development, Leapstack remains true to its original mission, persistently aligning with the national strategic direction.
In the Health 3.0 era, insurance and medical services will go hand-in-hand to finish digital transformation, and the business models become multidimensional. With a sound domestic market share and its expansion in the overseas market, Leapstack is sure to gain new impetus for furthering its insurance business in the Asia-Pacific market. Going ahead, Leapstack will continue to play a pivotal role in transforming health insurance, advancing the development of robust big data models, and improving comprehensive operational services. Through these efforts, Leapstack remains committed to becoming a world-class technology platform for insurance, leveraging technologies to safeguard health guarantee.