China Insurance Group and Internet giant Tencent yesterday signed a strategic cooperation agreement in Shenzhen, to enable the digital transformation of China Insurance, and promote Tencent's leading digital technology capabilities.

State controlled China Insurance Group includes China United P&C and China United Life in its stable. The group aims to upgrade its customer services, operating models and operational efficiency and provide customers with comprehensive, diverse and intelligent financial services.

The cooperation between the two parties will cover cloud computing architecture, big data, insurance technology and other related areas. Tencent's rich digital interfaces and digital toolboxes will be combined with China Insurance's diverse product services to help China Insurance in its digital transformation.

Mr Xu Bin, vice chairman of the China Insurance Group, said that the group is looking forward to introducing Tencent's cutting-edge digital technology and Internet innovation model to the rich business scenarios of China Insurance, giving full play to the edge which China Insurance has in agricultural insurance and with grassroots organisations.

Tencent, well known for its WeChat app, has been moving into the FinTech and insurance arenas.

Tencent’s affiliate insurance platform, WeSure, offers several insurance products. For instance, WeSure works with Taikang Life on a low-cost six-year health insurance plan. Tencent also has a stake in Blue, which is Hong Kong’s first digital-only life insurance company. The WeChat app enables users to engage in a range of financial activities, from making online payments to buying wealth management services.