In recent years, major insurance companies have been actively developing health management services. However, internet healthcare has long been considered a "strategic cost center" for insurance companies. Now, various indicators suggest that the insurance industry's health management initiatives may be entering their first profitable harvest period.

On August 19, PA GOODDOCTOR, the healthcare and elderly care flagship of Ping An Group, announced its interim results for the six months ended June 30, 2025. The financial report showed total revenue of 2.5 billion yuan, representing a 19.5% year-on-year increase, while net profit attributable to the parent company reached 134 million yuan, surging 136.8% year-on-year.

As a leading industry player, PA GOODDOCTOR achieved its first turnaround to profitability in the first half of last year, generating profits exceeding 60 million yuan. This performance of double-digit revenue growth and substantial profit improvement indicates the company has officially entered a performance harvest period.

PA GOODDOCTOR CEO Li Dou stated during today's earnings conference that the company focused on advancing AI technology in professional medical fields during the reporting period. The company achieved precision medical empowerment, with AI-assisted consultation rates reaching approximately 98% and accuracy rates for critical disease multidisciplinary team (MDT) treatment plans approaching 80%. AI-assisted doctors can handle daily consultation volumes of up to 4 million patients. With AI support, the company improved both diagnostic and operational efficiency, reducing average service costs for family doctors by over 50% year-on-year while enhancing mid-office operational efficiency by approximately 50%.

**AI Opportunities Drive Profit Improvement**

PA GOODDOCTOR's interim results showed that revenue from its comprehensive financial client segment (F-end) and enterprise health business (B-end) increased 30.2% year-on-year, while overall paying users grew 35.1% year-on-year. The continuous growth in paying users, usage frequency, and average revenue per user demonstrates market recognition of the company's online medical and health management services, significantly strengthening its commercialization capabilities.

CFO Zang Luoqi explained that PA GOODDOCTOR's profit improvement benefited from three key factors: first, AI technology empowerment significantly enhanced doctor service efficiency, reducing average service costs by 52% year-on-year; second, continuous business structure optimization with high-margin service revenue increasing its proportion by 4 percentage points, achieving structural transformation; third, steady growth in platform revenue proportion through connecting quality supply chain resources to enrich product categories, further meeting diverse consumer demands and driving gross margin improvement.

Notably, technology empowerment serves as key support for quality and efficiency improvements in the health management industry, not only optimizing service experiences but also becoming the core engine for profit improvement. Leading institutions leverage massive medical data to build medical large models, achieving intelligent breakthroughs in consultation assistance, treatment planning, and operational management.

Zang Luoqi noted that in cost control, the deepening of technology empowerment and digital operational management, combined with emerging scale effects, provided room for optimizing total expense ratios and three-expense ratios. For instance, PA GOODDOCTOR's focus on refined management of strategic businesses like corporate health and elderly care continuously improved productivity, becoming the core driver of overall performance improvement. In R&D investment, the company invested 160 million yuan in the first half, accounting for 22% of total expenses with an expense ratio of 6.5%, maintaining a high industry level and providing solid support for medical team efficiency enhancement and operational management optimization.

Regarding future capital allocation, Zang Luoqi responded to investor questions today, stating that PA GOODDOCTOR will continue increasing strategic investments, focusing on the deep integration of artificial intelligence and healthcare. The company plans to invest nearly 40 million yuan in AI in the second half, promoting the implementation of critical disease multidisciplinary consultation assistance platforms in more areas beyond breast cancer, further improving diagnostic efficiency.

Leading insurance companies are achieving comprehensive health management process innovation through AI technology. For example, Taikang Life Insurance has integrated the DeepSeek large model, building an intelligent application matrix covering over 100 insurance sales, underwriting and claims, and medical care operations scenarios. Pacific Insurance launched the "AI Smart Health Insurance" product, integrating intelligent document review, health examination report analysis, and intelligent claims processing, while collaborating with West China Hospital to develop "Digital Therapy for Comprehensive Management of Pulmonary Nodules with Insurance Protection," combining AI models with disease intervention and precision insurance coverage.

Furthermore, AI has evolved from an auxiliary tool to a strategic core for insurance companies, with multiple insurers elevating artificial intelligence to group strategic levels. Ping An has promoted AI large models and big data technologies across the entire group, building industry-leading five major laboratories and nine databases, continuously implementing comprehensive digitalization projects including digital operations, digital management, and digital marketing, driving the group's operational management model transformation from "experience-based decisions" to "data-driven decisions," achieving business scenario applications in finance, healthcare, and elderly care.

PICC has strengthened digital infrastructure resource sharing, promoting "six unified" technology foundation construction including computing power, technical routes, data foundation, intelligent foundation, security foundation, and autonomous controllable solutions. PICC Vice President Zhang Jinhai stated that the intelligent foundation, as an important component of the "six unified" strategy, aims to promote unified management and operation of internal computing resources and PICC cloud platforms, with core objectives of strengthening unified planning, deployment, management, and operation of group-wide AI capabilities, ensuring efficient integration and optimal allocation of AI resources, and promoting deep integration of technological innovation and business development.

CPIC Chairman Fu Fan stated in April that in the new development phase, the company officially launched three major strategies: comprehensive health and elderly care, "AI+", and internationalization. The "AI+" strategy serves as an important engine for innovative development, injecting new development momentum into traditional businesses through technology empowerment and achieving innovative breakthroughs in business models and formats.

**Health Management Demand Drives Industry Upgrade**

With the gradual implementation of the "prevention-first, early intervention" concept outlined in the "Healthy China 2030" planning framework, the health management industry is transforming from single medical services to full life-cycle health maintenance. Data shows that China has over 300 million chronic disease patients with an aging rate exceeding 20%, creating rigid demand for health management.

Against this backdrop, health management has become an important lever for insurance companies' business development. Due to insurance products' characteristics of poor perception and low-frequency interaction, policyholders may experience insufficient brand loyalty and customer stickiness. Health management services can break this pattern by combining insurance products with health management, connecting upward with health insurance and pension insurance products while driving downstream services like hospital green channels, geriatric medicine, and nursing services, playing important roles throughout customers' entire life cycles. This facilitates secondary customer value discovery, improves customer stickiness, enables cross-selling of various products, and creates synergistic effects between insurance sales and services, forming bidirectional interaction and circulation.

Additionally, competition in insurance health management has evolved from single service provision to ecosystem construction. For example, PA GOODDOCTOR has built a "traffic-service-payment" closed-loop ecosystem through deepening collaboration with the group's financial segments. CEO Li Dou stated that on the F-end, the company deeply embeds medical and elderly care services into the full life cycle of insurance products like critical illness and million-dollar medical insurance, providing users with one-stop services from diagnosis to recovery, driving insurance business transformation from low-frequency transactions to high-frequency services. PA GOODDOCTOR's 2025 interim data shows that financial customers enjoying medical and elderly care ecosystem services have average contract numbers and average AUM that are 1.6 times and 4.0 times higher than other customers, respectively, demonstrating significant synergistic effects.

Most insurance companies have begun related explorations. Taikang Life has built an "insurance + medical care" ecosystem, leveraging Taikang Home's physical presence in 36 cities with 44 elderly care communities and five major medical centers to launch the "Happy Agreement" product system. Sino-UK Life leverages COFCO Group's industrial chain resources to create the "N+ Healthy Living" plan, promoting health concepts through nutrition markets, health lectures, and cross-industry collaboration activities. Pacific Health Insurance launched the "Medical Claims Connect" tool, integrating family doctors with intelligent claims processing, with direct-pay medical institutions exceeding 1,200, helping enterprises shift employee health intervention from treatment to prevention.

With PA GOODDOCTOR's explosive performance, the possibility of insurance health management transforming from a "strategic cost center" to a "profit contribution center" is being validated. Health management services are no longer merely auxiliary means for improving customer stickiness and reducing claim risks, but may themselves become core businesses capable of independently generating revenue and profits.

Long Ge, Associate Director of the Innovation and Risk Management Research Center at the University of International Business and Economics, stated that PA GOODDOCTOR's 136.8% year-on-year surge in net profit for the first half of 2025 partially validates the success of its "medical-insurance synergy" model in driving insurance health management's transformation from cost center to profit contribution center, though longer operational cycles are needed for full validation. Under AI-driven cost reduction and efficiency improvement, intensifying aging, and policy drivers, the insurance health management field has enormous potential, with commercial health insurance market size expected to exceed 1 trillion yuan by 2030 and nursing insurance potentially surpassing 200 billion yuan.