- With a registered base of more than 100 Million users,
the partnership will earn commissions on insurance sales made via
the MICT platform
- Expected to launch during the first quarter of 2021
and deliver significant revenues for the remainder of the year
- Further significant milestone on delivering rapid
growth in China's
nascent insurance market
MONTVALE, N.J., Dec. 14, 2020 /PRNewswire/ -- MICT, Inc.
(Nasdaq: MICT) (the "Company"), today announced that its
wholly owned subsidiary GFH Intermediate Holdings Ltd (GFHI) has
entered into a commercial partnership with one of China's largest payment service providers. The
commercial partner provides payment services to a fast-growing
network of merchants, which includes some of China's largest chains of convenience stores,
as well as a broad cross-section of other retailers.
Set to commence during the first quarter of 2021, the new
contract incorporates a commission share for the payment service
provider on the insurance sales its generates via GFHI's platform.
The registered base of the payment service provider currently
exceeds 100 million users.
Today's news comes less than three weeks after MICT signed a
number of new insurance agency contracts, which commence during the
first quarter of 2021 and are anticipated to generate significant
recurring revenues of potentially up to several millions of dollars
"This contract with an established and eminent partner in
China is further validation of our
fintech strategy, technology, platform, products, and management,"
stated MICT's CEO, Darren Mercer.
"Combined with our strong cash position and our recent insurance
agency contracts, today's news means we are well positioned to
capitalize on the exceptional opportunity that the Chinese
insurance market offers, in 2021 and beyond."
China's nascent market for
insurance products is already the second largest in the world and
has been forecast to overtake the U.S. by the mid-2030s. Online
insurance premiums in China are
forecasted to grow 41% per annum between 2019 and 2024. By 2032,
total insurance premiums in China
are estimated to reach $2.36
trillion, eclipsing the U.S. market by almost $1 trillion.
The data included herein with respect to the Chinese insurance
market was made public by the Swiss Re Institute and Mordor
MICT, Inc. (NasdaqCM: MICT) operates through its
subsidiaries, GFH Intermediate Holdings Ltd. ("GFHI") and
Micronet Ltd. ("Micronet"). GFHI's versatile proprietary trading
technology platform is designed to serve a large number of high
growth sectors in the global fintech space. Primary areas of focus
include online brokerage for equities trading and wealth management
services and sales of insurance products in several high-growth
foreign markets including Asia where GFH owns a
substantial propriety database of users. Micronet operates in the
growing telematics and commercial Mobile Resource Management
market, mainly in the United States and Europe.
Micronet designs, develops, manufactures and sells mobile computing
solutions that provide fleet operators and field workforces with
computing solutions in challenging work environments.
This press release contains express or implied forward-looking
statements within the Private Securities Litigation Reform Act of
1995 and other U.S. Federal securities laws. These
forward-looking statements include, but are not limited to,
statements related to revenue targets, the growth of the Chinese
Insurance market and other statements that are not historical
facts. Such forward-looking statements and their implications
involve known and unknown risks, uncertainties and other factors
that may cause actual results or performance to differ materially
from those projected. The forward-looking statements contained in
this press release are subject to other risks and uncertainties,
including those discussed in the "Risk Factors" section and
elsewhere in the Company's annual report on Form 10-K for the year
ended December 31, 2019 and in subsequent filings with
the Securities and Exchange Commission. Except as otherwise
required by law, the Company is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.