(Yicai) Aug. 19 -- The Chinese city of Shenzhen has launched an inclusive insurance product designed to serve small- and medium-sized technology companies, aiming to provide them with low-cost, broad-coverage one-stop risk protection while addressing existing shortcomings.

Shenzhen Huikebao provides tech companies with comprehensive, end-to-end, and multidimensional risk protection through unified terms, rates, and plans. It covers 11 types of risks across four major areas: production and operations, research and development and innovation, intellectual property, and personnel safety.

Shenzhen Huikebao was designed and developed by a consortium coordinated by the Shenzhen Insurance Association in response to common challenges faced by small- and medium-sized tech companies, including fragmented insurance coverage, high barriers to obtaining insurance, high premium costs, and lack of coverage for innovation-related risks.

The insurance companies offering Shenzhen Huikebao include People’s Insurance Company of China Property and Casualty, Ping An Property and Casualty, China Pacific Property Insurance, and Guoren Property and Casualty Insurance.

Shenzhen Huikebao follows an inclusive pricing principle, with premiums starting at CNY9,800 (USD1,455) and coverage from CNY5.5 million (USD815,625), a spokesperson for PICC Property and Casualty said at the product launch ceremony yesterday.

Shenzhen Huikebao’s rates are much lower than those of comparable products on the market. Eligible tech firms can receive premium subsidies of up to 50 percent of the actual paid premiums, with an annual subsidy cap of CNY1 million per recipient, the PICC Property and Casualty spokesperson noted.

Several small tech companies have already reached preliminary agreements with the selected insurers at the launch ceremony to buy the product. “Shenzhen Huikebao not only addresses our risk protection needs but also genuinely helps us reduce operating costs,” the head of a local tech firm said.

Shenzhen has set up multiple co-insurance platforms for tech companies in sectors including artificial intelligence and commercial spaceflight this year. The city’s technology insurance premium income reached CNY2.7 billion (USD394.5 million) in the first half of the year, the highest among China’s large- and medium-sized cities, according to the SIA.

Editor: Futura Costaglione