ADB Makes First Direct Insurance Equity Investment to Expand Health Coverage in PRC

The Asian Development Bank (ADB) has made a landmark move by committing an equity investment in Fosun United Health Insurance Company Limited (FUHI) to expand commercial health insurance coverage and strengthen long-term care services in the People’s Republic of China (PRC). This marks the first time ADB has directly invested in the insurance sector, signaling its recognition of the critical role of private health insurance in supporting inclusive and sustainable development.

Equity Investment and Co-Financing

ADB invested CNY270 million (approximately $37.3 million) into FUHI, with the International Finance Corporation (IFC) and Shanghai Fosun Pharmaceutical (Group) Co., Ltd. each contributing an equivalent amount. The financing is designed to enhance FUHI’s solvency level and support its business expansion, enabling the company to reach more people with affordable health and long-term care products.

FUHI is one of just seven specialized health insurance companies in the PRC. Established in 2017, it has developed a portfolio of services covering medical, critical illness, nursing care, and accident insurance, and is positioning itself as a leader in lifecycle health management.

Responding to an Aging Society

China faces a pressing demographic challenge. By 2035, an estimated 400 million people will be aged 60 or older, representing nearly 30% of the population. This rapid aging poses immense pressure on public health insurance and long-term care systems.

ADB’s support is designed to complement public programs by enabling FUHI to expand products and services tailored to vulnerable groups, particularly the elderly and women. Women face disproportionate barriers to insurance due to lower financial literacy and higher representation in informal employment, leaving them exposed to health and financial risks.

Asif Cheema, ADB Country Director for the PRC, explained the importance of this investment:

“ADB’s investment in FUHI will help strengthen the commercial health insurance market in the PRC, providing essential coverage for medical and long-term care needs, particularly for the elderly and women. This project underscores our commitment to inclusive and sustainable development, ensuring that vulnerable populations have access to affordable and comprehensive health insurance.”

Green Finance and Social Impact

Beyond expanding insurance services, the investment also embeds environmental and social commitments. FUHI will channel funds into green bonds equivalent to 55% of ADB’s equity investment, supporting projects with measurable climate and environmental benefits.

Additionally, FUHI will:

• Enhance digital claims processing to improve efficiency and transparency.

• Introduce financial literacy programs for women, increasing their ability to access and benefit from insurance products.

• Implement workplace gender equality and disability inclusion policies.

• Allow ADB to nominate a board director, strengthening governance and accountability.

Building a Resilient, Inclusive Insurance Sector

The partnership between FUHI and ADB represents a step toward building a robust, inclusive, and resilient health insurance ecosystem in China. FUHI’s commitment to innovation-driven strategies, professional service delivery, and customer-focused solutions aligns with ADB’s broader goals of fostering social equity, climate resilience, and private-sector development.

By offering specialized products for children, women, and the elderly, FUHI aims to close protection gaps and expand insurance penetration in underserved markets. The collaboration is also expected to drive broader industry transformation, setting new benchmarks for socially responsible insurance in the region.

Looking Forward

The equity investment underscores the role of blended finance in tackling emerging development challenges—combining public-sector development banks and private-sector actors to address demographic, health, and social pressures.

By supporting FUHI’s strategic transformation, ADB and its co-investors are not only strengthening China’s insurance market but also contributing to global development goals on health, gender equality, and climate resilience.

As FUHI expands, its ambition to become a leading expert in lifecycle health management positions it as a critical player in safeguarding the health and financial well-being of millions in the PRC.