The Amazing Ping An and Opportunities for Nigerian Insurers

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May 18, 2019

By Nnamdi Odumody

Ping An Insurance is the leading Insurance services provider in China, serving 538 million online customers and 184 million retail customers through its ecosystems of financial services, healthcare, auto services, real estate and smart city solutions. It is the world’s biggest insurer with a market capitalization of $181.4 billion and earned revenues of $144,197 billion in 2018.

Ping An Good Doctor, China’s largest online healthcare services provider, has now expanded its AI-geared “one-minute clinics” across eight major Chinese provinces and cities. With signed service contracts for almost 1,000 units and a growing user reach of over 3 million patients, the company has stocked its 24/7 compact booths with more than 100 categories of cryogenically refrigerated common drugs, purchasable through smart vending machines. Each clinic houses an ‘AI Doctor,’ trained to collect data on patient symptoms and medical history through voice and text input, after which one of Ping An’s human doctors provides remote diagnosis, medical advising, and immediate online prescriptions.

Ping An invests $1billion annually on Research & Development with 22,000 R&D staff, and has over 4,000 patents even as they invested $22 billion on AI for sales and marketing in 2017.

Applications of Technology

These are some areas it has deployed technologies:

Internally generates higher return for core businesses. Customer segmentation and precision marketing for cross-selling and up-selling 20 percent plus 12 month conversion rate, gaining 67 percent more repeat buyers.
Image Based Auto Insurance Loss Verification Technology for 100,000 plus vehicle types and 500 plus risk factors with 92 percent loss verification accuracy.
AI and Biometric based credit risk management which detects fraud based on micro expression recording 1.18 percent credit card Non Performing Loan rate among the least three in the industry.
Ping An FinCloud (the largest proprietary cloud platform in the Chinese financial services industry) is connected to 70 percent of Ping An’s core business. It externally provides and monetizes technology by One Connect (OneStop financial Cloud Platform). It’s Smart Fast Claim has 7 partner institutions recording 3 billion Rmb leakage reduction in the first quarter of 2017, and 20 billion Rmb potential revenue was generated from risk leakage control.
Intelligent Personal Loan Solution had a billion plus usage in 2017 while intercepting 15 million frauds. Loss from internet fraud is 0.6 percent of Chinese GDP.
Cloud Service Platform for Small & Medium Banks partnered with 400 plus banks. It is compliant to Chinese banking and financial services Regulatory Authorities. Its target market is 600 plus SMB’s which hold 40 percent of bank assets in China.

Ping An in Healthcare

Ping An Healthcare & Technology Company is the leading one stop healthcare ecosystem in China. It combines mobile health plus Artificial Intelligence to provide every family with an e-health profile and everyone with a health care management plan. Ping An Good Doctor which is an online portal has established a comprehensive healthcare ecosystem which covers family doctor services, consumer healthcare services, a health mall as well as health management and wellness interaction.

As at Dec 2018, Good Doctor had 265 million registered users while its monthly active users had reached 54.7 million. It is the largest mobile medical application in China in terms of user scale, employing more than 1,000 medical personnel (Assistant Supervisor Level or above from Class III Grade A Hospitals) in its in-house medical team and contracts with 5,203 renowned external doctors. The in-house medical team empowered by its proprietary AI provides users with 24 hour online consulting services. Good Doctor collaborates with over 3,000 hospitals to provide services such as hospital referrals, appointments and inpatient arrangements. It also partners with more than 2,000 healthcare institutions including physical examination centers, dental clinics, cosmetic surgery institutions and more than 15,000 pharmacy outlets to provide personalized health and wellness services to their users.

By integrating it’s AI empowered medical team, external doctors and offline network, Good Doctor has established a closed loop healthcare ecosystem which enables its users to enjoy personalized healthcare services along its value chain.

All Together

Nigerian Insurance companies should learn from Ping An in order to create new revenue streams by plugging into the opportunities digital transformation provides by redesigning their operating models for the Fourth Industrial Revolution.

This Week, I Became a Shareholder and Board Member of an Amazing Fintech Company

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Ndubuisi Ekekwe

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May 17, 2019

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This week went great – I became a shareholder and board member of an amazing fintech which is unifying payment in the worlds of bytes (digital) and atoms (offline). You will learn about this company next week. It is one of the fastest growing fintech companies in Africa today. Extremely brilliant young people with a simple mission: attack that 98% of $301 billion.

According to research done by The Fletcher School and Mastercard Center for Inclusive Growth, of the $301 billion of funds flows from consumers to businesses in Nigeria, 98 percent is still based on cash.

Yet, most firms are focusing too much on “clicks” neglecting “bricks”. If 98% of your revenue is coming from bricks today, you cannot neglect the physical. Do not listen to them when they say that today is mobile and online. Sure, the future promises mobile and online, but we have to survive today.

Do not be intimidated with the alarms on online disruption: the glory on the clicks is a promise. But “bricks” is on our hands. You are investing too much for clicks and your management is focusing largely exclusively on clicks. No one cares about the bricks. Unfortunately, the “bricks” customers are noticing. They are not happy in your stores.

Our goal is total unification, and we have a hybrid fintech: attacking that 98% for glory

Always Great Whenever in Hillsboro Oregon

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Ndubuisi Ekekwe

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May 17, 2019

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To the makers of digital tomorrow, it is always a moment making it to the campus. Intel’s Ronler Acres campus in Hillsboro, USA, is amazing, building the pieces that make the world run and be transformed. In our electronics business, we remain honored to be working with Intel Corp for seven years now as Africa’s leading programmable microprocessor partner. I like coming to Hillsboro – it tells me how humans are creating that predictable future.

The problems we solve are not common day challenges but whenever the moment arises, Fasmicro Electronics is always ready. This mission has taken us to 37 countries in Africa.

The Intel® FPGA Training Partner Program enables engineers worldwide to receive high-quality training on Intel FPGA products. Intel FPGA Technical Training works closely with select companies who are designated members of the program. These companies receive information regularly from Intel FPGA Technical Training to ensure they have the tools to teach the latest technologies. Please click on the links below for details.

Microelectronics >> unless it advances, the clicks stall.

MTN Nigeria IPO Market Cap: My June 2018 Model Was Close – $5.57B vs. $5.8B

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Ndubuisi Ekekwe

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May 17, 2019

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MTN Nigeria has gone public – yes, I understand: there are varieties of going public. Nonetheless, when it went public, the valuation was 1.8 trillion naira ($5.8 billion using CBN rate).

MTN Group Ltd. will list its Nigeria unit in Lagos on Thursday in a move that will value the pan-African wireless carrier’s largest business at 1.8 trillion naira …).

The move is a step toward a partial sell down of the carrier’s majority 79% stake, and was agreed to as part of the settlement of a $1 billion regulatory fine three years ago. MTN Nigeria is the market leader in Africa’s most populous country, with about 60 million customers at the end of last year.

In my model, in June 2018, I arrived at $5.57 billion as the value of MTN Nigeria. Simply, I used the numbers from MTN Ghana to arrive at the pricing range in Nigeria after taking many factors into considerations. This was my conclusion: “That brings the market value of MTN Nigeria to be $5.57 billion.” You may like to read that piece again.

MTN Ghana has 17.8 million subscribers and commands a market share of 47.6%. MTN Nigeria has 54.5 million subscribers with a market share above 35%. Neglecting the market positioning and focusing on the subscriber base, 35% of MTN Nigeria should give 3.06x of the $745 million from Ghana (i.e. $2.3 billion). With this number, MTN Nigeria would be worth $6.57 billion. But since MTN Nigeria does not have the same market positioning as it has in Ghana (48% vs 35% market share), we would drop $1 billion from the number. That brings the market value of MTN Nigeria to be $5.57 billion. Post-IPO, that would give it about 13% of the total value of the Nigerian Stock Exchange, depending on the exchange rate you use.

This is the value of MTN Nigeria

The Greatest Moment for any Nation is when Entrepreneurs Rise.

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Ndubuisi Ekekwe

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May 17, 2019

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The greatest moment for any nation is when entrepreneurs rise.

Nigerian Decades of Entrepreneurship:

1990s – Banking

2000s – Voice telephony

2010s – Mobile internet

2020s – Digital applications