Alibaba's healthcare subsidiary is setting up a joint venture with a Chinese insurance company, an attempt to tap China's online health insurance operations.

Based on a filing to the Hong Kong Stock Exchange, Alibaba Health Information Technology closed a deal with six other firms to agree on a joint venture to enter China's internet health insurance-related operations.

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With a registered capital of 1 billion yuan ($154 million), this is Alibaba's latest drive towards the country's budding online insurance industry.

"Through the joint venture, it [Alibaba Health] will be able to participate in internet health insurance, which is a new and promising business area that will also help align the interests of the participants in the healthcare market," the filing said.

The joint venture, however, is still pending and awaits the approval of China's insurance authority, the China Daily reported.

Major insurance firm China Taiping Insurance Holdings Co Ltd. holds the largest share of the joint venture with 21 percent. Alibaba Health, Alibaba (China) Technology, and Alibaba-owned private equity firm Shanghai Yunfeng own 40 percent of the shares, while the remaining 39 percent is held by TPL, Yuwell Technology, and Shenzhen Baiyeyuan.

Industy experts, on the other hand, were not surprised with Alibaba's move, given that integration of health insurance over the internet has shown strong potential growth.

Ma Tao, research director of internet consultancy firm Analysys International, said that Alibaba's new venture is reasonable as the company already has data and technology advantage.

Analysys International estimated that the online insurance market in China reached 150 billion yuan ($23 billion), accounting for nearly 6 percent of the country's insurance sales.

TagsAlibaba, Alibaba Health, Insurance, China insurance regulatory commission, China Taiping Insurance Holdings Co., TPL, Jack Ma, joint venture