The Asian Development Bank (ADB) has made its first direct equity investment in the insurance sector by committing CNY 270 million ($37.3 million) to Fosun United Health Insurance Company Limited (FUHI). The investment, approved by regulators, is part of a joint effort with the International Finance Corporation and Shanghai Fosun Pharmaceutical, both of which contributed equivalent amounts. The funding will enhance FUHI’s solvency and support its expansion as one of the People’s Republic of China’s (PRC) seven specialized health insurance companies.
According to ADB Country Director for the PRC Asif Cheema, the investment will strengthen the commercial health insurance market by expanding coverage for medical and long-term care needs, especially for vulnerable groups such as women and the elderly. The initiative aligns with ADB’s focus on inclusive and sustainable development, providing affordable, comprehensive insurance to populations at risk of financial hardship from health-related expenses.
China’s rapidly aging population, with projections of 400 million people aged 60 and older by 2035, poses significant challenges for sustainable healthcare. Women are particularly disadvantaged due to low financial literacy and informal employment, leaving them more exposed to health risks. FUHI’s growth strategy seeks to complement public insurance schemes by offering specialized products tailored to women’s needs, enhancing financial literacy, and introducing innovative health solutions.
As part of the project’s impact commitments, FUHI will invest in green bonds equivalent to 55% of ADB’s equity investment to fund environmentally beneficial projects. The company will also improve digital claims processing, launch financial literacy programs for women, and adopt workplace policies advancing gender equality and disability inclusion. ADB will secure a board nomination right to strengthen FUHI’s corporate governance.
This partnership aims to position FUHI as a leader in lifecycle health management, supporting vulnerable groups through innovative insurance products covering medical, critical illness, long-term care, and accident insurance. Founded in 2017, FUHI operates with a mission centered on innovation, professionalism, and customer-focused solutions.
For ADB, the collaboration demonstrates its commitment to fostering social equity and resilient development in Asia and the Pacific. By leveraging partnerships and innovative financing, ADB continues its mission of driving inclusive growth, strengthening infrastructure, and safeguarding the environment across its 69 member countries.
