And this time we actually now working with PICC, which Mr. Ma mentioned earlier in the call. We are working now with large insurers on these customized products. So hopefully, create more attention among our customer set and to drive more sales in these categories.
Operator: We’ll now take our next question. This is from the line of Zeyu Yao from CICC. Please go ahead.
Zeyu Yao: Thanks, management. And congrats on your good result, this is Zeyu Yao from CICC, and I have one question here, and my question is for the 2A segment. Could you give us some more color on how is it going so far? And we’ve noticed that the recently insurance Association of China has asked for industry’s advice about agent classification. So, if it’s in claimant’s eyes, I think it may have some effect on to a business. So, could share some more views on that. Thank you.
Cunjun Ma : Thanks. So, we touched on the 2A business earlier in the opening remarks. I think, this business line has continued to be very strong at least in 2023. It’s contributing almost 20% of our overall premium facilitated, and we continue to see strong growth in this business line. So, specifically, I think there’s a number that I can share here. So, FYP facilitated by the IFA platform, which is the 2A platform was RMB350 million last year, which is a year-over-year increase of 73%. And I think the most important thing is more and more independent agents or IFAs are now coming to our platform as partners because they find the three things that are very much our competitive strengths. Firstly, we have a very extensive product matrix from simple PNC products to the extensive, life and health products that we have.
And in particular the customized, exclusive creature products that we could develop with insurance carriers. So, I think that’s a big draw to these inter — independent agents to become associated with us as a partner. And secondly, I think, obviously, because of our scale advantage, we earn top commission rates with most of the insurance carriers. And thereby, these agents by plugging into our platform will be able to enjoy the revenue pickup versus maybe partnering with another platform or as an agent, inside an agency. So, I guess these are the things that are helping us attract more and more agents to come. And I think finally most importantly, we have a whole suite of the digital tools that we have been mentioning across our opening remarks, which really helps digitalizing the customer journey for these agents and also help them manage customers very efficiently with our digital and AI tools.
And there’s something that I think is quite a unique proposition in the Chinese market at least. So just to touch upon the IFA business model, I think what we are looking to launch is, we want to replicate this into the rest of Asia. So, I think we’ll be starting with Hong Kong and also going to other parts of Southeast Asia. I think that’s something that we think will be a very good value proposition to those local markets as well. So, I think, in short, it’s performing very well, and it will continue to be, it will be increasingly important as a revenue stream and business life for us. And your second part of the question is regarding the, well, I believe is the fin fund, right? The [indiscernible], so the agent qualification exams and the differentiation of different gradings.
So, what we understand is right now there is four grades for agents, grade one to grade four. So, for grade one, you can sell all the complicated products, life and health savings, whatnot. And grade four, you can only sell very simple products like protection or PNC. What we think that is, for most of the agent partners that we have on our 2A business or our IFA platform, most of these are relatively experienced agents that has been in the, who have been working in the industry for over five years on average. So, this regulatory impact will be minimal because I think most of these experienced agents have already qualified or can qualify for the higher tiers of the classification, and therefore it will not have a limiting impact on what they can sell or distribute to the customers.
And I think that the same can be applied to our in-house consultants and agents in the Huize platform. And most of our high-performing agents, can qualify under these new regulations. And we think that the draft paper has been out, but then the effective date would likely to be next year.
Operator: Thank you. At this point, we have no further questions, so I would like to hand the conference back to Harriet for closing remarks.
Harriet Hu: Thank you, operator. So, on behalf of Huize Management team, we would like to thank you for your participation in today’s call. And if you require further information, please feel free to reach out to Huize’s IR team. And thank you again for joining us today. This concludes the call.
Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.
