Following the announcement of Baidu Mutual Aid’s offline, Meituan Mutual Aid and Easy Mutual Aid will be shut down, and Water Drop Mutual Aid will also be shut down.

On the evening of March 26, Waterdrop Mutual Assistance issued an announcement stating that it will formally terminate the mutual assistance program at 18:00 on March 31, 2021.

However, the water drop mutual aid members don’t have to worry too much about follow-up service issues. The content of the announcement shows that for mutual aid members and members with diagnosed serious illnesses, there is a transitional period for Didi Mutual Aid.

Drip Mutual Assistance stated in the announcement that for mutual assistance members under protection, their protection will be upgraded through insurance. The platform will bear the premium and insure users for a one-year period of health insurance with a maximum insured amount of 500,000 yuan (Drip Health Insurance) . At the same time, Water Drop Mutual Assistance also provides members with free online consultations, physical examinations and other health services.

Before that, members who are unfortunately diagnosed with a serious illness can continue to apply for 180 days from the date of the first diagnosis. If they meet the original mutual assistance conditions, the platform will provide reasonable compensation. For the balance in the user’s account, the platform will initiate a refund within 5 days from the announcement date.

As for the reasons for the shutdown, Waterdrop Mutual Assistance stated that in order to provide users with a more comprehensive and stable guarantee, the service model will be upgraded.

Drip Mutual Help was launched in May 2016 and is one of the earliest established online mutual aid communities in China. As of now, the announcement shows that in the past five years since Waterdrop Mutual Aid went online, it has helped 21,235 families with tens of millions of members to tide over the difficulties.

In addition, Huxiong also learned that so far, Water Drop Mutual Aid has served more than 80 million members, of which more than 70% are from cities and regions below the third-tier in China. In addition to the mutual assistance of water droplets, water droplets also have businesses such as water drop protection, water drop chips, and water drop health.

As early as this afternoon, a person familiar with the matter disclosed that Waterdrop Mutual Assistance will announce its closure at 4 this afternoon.

Actually, Tiger Sniff is still a little surprised about the shutdown of Waterdrop Mutual Assistance, because there are recent market rumors that Waterdrop is planning a new round of financing before going public.

According to Reuters’ media IFR reported on March 10, Waterdrop plans to conduct a round of US pre-IPO financing in March (this year), with a financing amount of approximately US$500 million. In the article “Your Love on the Internet, Valuation of 40 Billion”, a person close to Water Drop told Hu Xiu, “Water Drop is indeed preparing to go public, and internally prefers US stocks. The time is the first half of 2021.” Market rumors are basically consistent.

Then, Drip Mutual, as a business of Water Drop, is at this critical node. Why did Water Drop shut down Dip Mutual? Is it related to the listing of Waterdrop?

Actually, a large part of the reason for the shutdown of Water Drop Mutual Assistance, including Baidu and Meituan Mutual Assistance, was: There are a large number of users of this type of online mutual assistance platform in China, but the issue of platform supervision has been missing. . Therefore, the country is strengthening the supervision of the network mutual assistance industry.

In 2020, the China Banking and Insurance Regulatory Commission issued the “Illegal Commercial Insurance Activities Analysis and Countermeasures and Suggestions”, naming some online mutual assistance platforms with a large number of members, which are non-licensed operations, and stakeholder risks cannot be ignored. Some pre-charging model platforms Forming precipitation funds, there is a risk of running away, if improper handling and management are not in place, it may also cause social risks.

Since then, a wave of non-major mutual assistance platforms established in the early days, such as Dandelion Mutual Assistance, 17 Mutual Assistance, Tadpole Mutual Assistance, Future Mutual Assistance, Unity Mutual Assistance, Big Tree Mutual Assistance, Neighbor Mutual Assistance, and Eight-Party Mutual Assistance, have all chosen to shut down.

In addition to the huge number of users and the lack of supervision, some insiders said that in the past year, Internet platforms have shut down mutual assistance businesses, and the amount of allocation gradually increased, forming an unsupervised fund pool, etc. The factor is related.

According to a previous report by China-Singapore Jingwei, Chen Zhiheng, the head of the mutual assistance business of Kangai Commune, said that the network mutual assistance looked very good at the beginning, and the platform operation cost and user joining cost were very low. However, as time goes by, the group’s The incidence of disease experience will rise, gradually tending to a normal level, and the rise in the sharing fee is inevitable. This leads to a cognitive difference between the user’s expected and actual apportionment level, which leads to apportionment customer loss.

For example, on a head network mutual aid platform, the average per capita share of the platform’s critical illness mutual aid plan in August 2019 was 1.47 yuan, and in October 2019, the first period rose to 3.01 yuan, compared to January 2021. The per capita share in the first period of the month rose to 5.28 yuan.

In addition to the increase in the apportioned amount, in the China-Singapore Jingwei report, Chen Zhiheng also talked about the network mutual assistance platform “difficult to settle claims.”It has also become a big slot for users.

The difficulty of claim settlement is mainly reflected in two aspects: First, the mutual aid industry has not formed an industry-specific claims settlement solution. The number of users of the mutual aid platform is in the unit of 100 million. The previous insurance company’s claims investigation plan is largely difficult to meet. The needs of the network mutual assistance industry; second, the degree of rigor of investigation is higher than that of insurance companies, because mutual assistance funds need to be shared by all members, so transparency must be achieved, which causes users to feel more difficult to settle claims than insurance companies, which affects the claim settlement experience.

At the two sessions this year, many committee members also made proposals on the supervision of network mutual assistance platforms. Many experts suggested that the top-level design of network mutual assistance supervision should be strengthened, and supervision methods should be innovated to solve the current lack of supervisors, no supervision, and no supervision of network mutual assistance platforms. The standard and non-standardized “four nos” state puts risks in the “cage” of the system to ensure the standardized and sustainable development of the network mutual assistance model.

In addition, a person close to Waterdrop said that (Waterdrop Mutual Aid Shutdown)This move is more to eliminate uncertainties for the company’s listing in the US .

In this regard, on October 21 last year, Ant Group also expressed its attitude towards Hu Hu Bao when preparing for the IPO of the Sci-tech Innovation Board. “If Hu Hu Bao cannot meet the compliance requirements for various reasons, it is not suitable for Ant Group. As a listed company continues to operate, Ant Group will divest the mutual treasure business.”

Regardless of whether the shutdown of Waterdrop Mutual Assistance is due to listing reasons, it is undeniable that under the circumstances of stricter and more standardized national supervision and supervision,

The turning point of the network mutual assistance industry has come. Next, in addition to the shutdown of these platforms, platforms that do not hold formal insurance licenses and other compliance licenses will usher in a wave of shutdowns.