Ping An’s Strategy on

Health & Medical Business

Dec. 2015

1

World-leading

Personal Financial Services

Provider

Asset

Management

Health

& Medical

Health Food House Auto Entertain

ment

Insurance Banking Investment

Health and medical business will become Ping An’s core strategy in the future

• The outlook of health and

medical industry is optimistic.

• It is closely related to Ping An’s

core businesses.

• It adapts to the trend of finance

industry from performance-

oriented model to service-

oriented model

2

The business scale of health service industry is projected to reach

RMB 8 trillion in 2020

Rapid growth of

economy

• Stable growth of GDP

• Increasing residents’

income

Aging

• Increasing aged

population

• High medical expense

per capita for aged

population

Policy support

• New health care reform

• Promote the

development of health

service industry

Change in health

status

• High proportion of sub-

health population

• Higher morbidity of chronic

illnesses

2.6

5.0

8.0

2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E

• Data source: Several Opinions on Promoting the Development of Health Service Industry

in RMB trillion

Business scale of

health service industry from

2011 to 2020

• HMO: Health Maintenance Organization; PBM: Pharmacy Benefit Management; SMI: Social Medical Insurance

Health & Medical Industry’s Current Situation and Future

3

Insureds/Consumers Convenient, inexpensive, healthy

SMI/Commercial Insurance Impact the whole industry chain

Enhance efficiency and control costs

HMO

PBM

SMI

Commercial

Insurance

Information

Third-party

Service Transparent

information

Convenient

services

Other services

Drug/Equipment Separation of

clinic from

pharmacy

Reduce

circulation

Retail Production Distribution

Health/Medical

Care Enhance

efficiency and

control costs

Private

medical

institution

Public

medical

institution

Health Management

Institutions

Insureds/Consumers Difficult , expensive

SMI/Commercial

Insurance Passive payment

Low efficiency

SMI

Commercial

Insurance

Information Third-party

Services Information is not

transparent

Other services

Retail drug store

Drug/Equipment Unified

operations of

clinics and

pharmacies

High cost in

circulation

Hospital’s

dispensary Produ

ction

Distrib

ution

Health/Medical

Care Public hospitals’

dominant status

Waste of

medical

resources

Private

medical

institution

Public medical

institution

Health Management

Institutions

Now Future

Retail Production

Private

medical

institution

Public

medical

institution

Health Management

SMI

Commercial

Insurance Other

services

Distribution

Information

Insureds/Consumers

SMI/Commercial Insurance

Drug/Equipment

Health/Medical care

Third-party service

Strategic Layout of Ping An’s Health & Medical Business

4

Important

Sub-important

Not involved

Insureds/Consumers Service provider Payer

Ping An Good Doctor

SMI: Intelligent and efficient

managed care service provider

Commercial insurance:

professional and innovative health insurance provider

Risk control

Health Cloud Platform

Self-established

clinics

Certified clinics

Franchise

clinics

Private Clinics

Health management and medical services:

One-stop, whole-process, O2O service platform

Smart

management

Smart

services

Smart

guarantees

Expanded

services

One-stop

payment

Optimized

guarantees

Enhance the competiveness

of the product

Customer diversion

Provide medical

resources

Provide services

for insureds Support product innovation

enhance risk control

Health cloud: accurate and professional service provider of medical data operations

1 2

3

4

Overview of Ping An’s Health & Medical Business

on

lin

e

off

lin

e

Payment platform: Ping An Pay Account platform: The One Account Supporting

platforms

referral

5

Pa

rtne

r ho

sp

itals

Ch

ec

ku

p c

en

ter

Te

stin

g c

en

ter

Ph

arm

ac

y

6

Health & Medical Services:

One-stop, Whole-process, O2O (“Ping An Good Doctor” as the online port )

Online port

Family

Doctor

Consultation

By

Specialists

Registration Easy

Medicine

Purchase

Health

Community

Health

Plan

Medical

visit

Health

check-up

Medicine

purchase Exercises

TCM

physiotherapy

Offline network of

medical & health

services

Provide health

consultation services

Provide offline

medical services

Ping An Good

Doctor APP

Online health service platform

Offline health service platform

Private

clinic

Hospital Health check-up/

Test Center

Pharmacies Health

partners

One-stop

Whole-process O2O Network

of doctors

1

Individual

& group

clients

SMI: Smart and Efficient Managed Care Service Provider

7

2

Smart

Management

Smart

guarantees

Smart

services

Knowledge

base

Big Data

Mobile

• Actuarial support

• Evaluation of hospitals’

performance

• Intelligent review of

medical expenses

• Administration system

targeting critical

diseases

• Customized

guarantees

• Mobile services given

to insureds

• Intelligent support

given by doctors

Smart Health Insurance

Platform

Core capabilities

Accurate actuarial model

System of assessing

hospitals and doctors

Standards for reviewing

medical expenses

Multi-level medical

resources

Insured’s individualized

requirements

One-stop payment

combining commercial

insurance and SMI

8

Commercial Health Insurance:

Professional and Innovative Health Insurance Provider

PA Health PA Life PA Annuity

Commercial Health Insurance:

Leading in the market

Middle and low end

health insurance for

individuals

Middle and high end

health insurance

Optimized guarantees Risk control One-stop payment Expanded services

•Special medicine

insurance

•Chronic illness

insurance

•Nursing insurance

•Big data-based risk

screening

•Control medical costs to

lower the compensation

amount

•Real-time claims

settlement

•One-stop payment

combining SMI and

commercial insurance

•Orientation

•Health Management

Ping An’s managed care commercial health insurance model

based on SMI’s core capabilities

3

Middle and low end

health insurance for

groups

9

Health Cloud:

Accurate and Professional Service Provider of Medical Data Operations

4

Commercial

insurance

To

Counter-fraud

model

Analysis of the

trend of the

disease

Patient

administration

Facilities for clinical

diagnosis and

treatment

Product innovation

Targeted service

Risk assessment

Health record

Health report

Health check-up

management

Individual

SMI Doctor

Intelligent analysis

Security

Big Data

All-round information

B

To

C