MICT launches insurance platform in China

By Edil Corneille

MICT announced that its wholly-owned subsidiary GFH Intermediate (GFHI) has launched the MICT’s proprietary insurance platform that is expected to be actively offering insurance products by week’s end, ahead of the MICT’s anticipated timeline for launch. As a result, MICT believes that it will commence revenue generation from some of its insurance contracts during December 2020.

In a press release by MICT, it was mentioned that the announcement comes on the heels of the recently announced partnership with one of the country’s largest payment service providers as well as the signing of a number of insurance agency contracts being completed. China’s nascent market for insurance products is estimated to be the second largest in the world and has been forecasted to overtake the U.S. market by the mid-2030s. Online insurance premiums in China are forecasted to grow 41 per cent annually between 2019 and 2024, with an estimated market size to reach $2.36 trillion by 2032, according to Swiss Re Institute and Mordor Intelligence.

“We have anticipated this launch for some time and believe that we are providing the Chinese market with superior products and services and believe this will be an important part of our revenue stream moving forward,” commented MICT’s CEO Darren Mercer. “By launching the platform at this time, we will be able to commence revenue generation in December 2020. We also look forward to building significant momentum in the new year and will update shareholders on our progress.”

MICT also wishes to clarify the purpose of the resale registration statement filing made on Friday, December 18, 2020. The filing was not for new issuance of shares but was made to register a portion of the company’s currently outstanding restricted shares from certain of its holders. MICT operates through its subsidiaries, GFHI and Micronet.

GFHI’s versatile proprietary trading technology platform is designed to serve a large number of high growth sectors in the global FinTech space. Primary areas of focus include online brokerage for equities trading and wealth management services and sales of insurance products in several high-growth foreign markets, including Asia, where GFHI owns a substantial database of users.

Micronet operates in the growing telematics and commercial Mobile Resource Management market, mainly in the United States and Europe. Micronet designs, develops, manufactures, and sells mobile computing solutions that provide fleet operators and field workforces with computing solutions in challenging work environments.