SOS Limited, today announced that it has acquired its insurance brokerage qualifications in China through the acquisition of Inner Mongolia Post Insurance Agency Co., Ltd. In March 2020, SOS Information Technology Co., Ltd. , the Company’s wholly owned subsidiary, entered into an agreement with China Post Group Corporation , the state-owned enterprise operating the official postal service of China, to acquire 100% of the equity interests of Inner Mongolia Post Insurance Agency Co., Ltd., an indirect subsidiary of China Post. Thereafter, Inner Mongolia Post Insurance Agency Co., Ltd. became a wholly owned subsidiary of SOS and was officially renamed as Inner Mongolia SOS Insurance Agency Co., Ltd.
Inner Mongolia SOS Insurance Agency Co., Ltd. (“Inner Mongolia SOS”) is licensed to conduct the sale of insurance products and to collect insurance premiums within the administrative jurisdiction of the Inner Mongolia Autonomous Region through its 12 branches in Inner Mongolia Autonomous Region. The insurance industry is highly regulated by the China Insurance Regulatory Commission, an agency authorized by the State Council of China to regulate the insurance products and services market and maintaining legal and stable operations of the insurance industry in China. The entry threshold for private enterprises in the insurance industry is extremely high due to governmental regulations, and therefore the acquisition of Inner Mongolia SOS has brought strong business opportunities to SOS through its insurance brokerage qualifications in Inner Mongolia. At present, the insurance business data for the first quarter of 2019 released by the official website of Inner Mongolia Banking and Insurance Regulatory Bureau is approximately RMB30 billion (approximately US$4.338 billion). Based on this data, it is estimated that the overall insurance premium market of Inner Mongolia Autonomous Region in 2019 was approximately RMB100 billion (approximately US$14.46 billion). Generally, around 30% of the insurance premiums are collectible as handling fees, which is estimated to be approximately RMB 30 billion for 2019 (approximately US$ 4.338 billion).
Management believes that through the addition of the insurance agency business, the operations of SOS will be further developed, and will bring the Company closer to its goal of building an international and efficient rescue service system.
Source : SOS Limited