Chinese online search behemoth Baidu Inc. announced a joint venture with China Pacific Property Insurance, a subsidiary of China Pacific Insurance Group Co. earlier this week.

By teaming up with the insurance company, Baidu aims to form an online auto insurance company with a registered capital of 2 billion yuan ($305 million). In addition, the tech giant will also gain access to "big data," which it will use for operational efficiency.

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Moreover, Baidu expects to design new products for auto insurance and both companies will also collaborate on other issues such as operations and risk control.

Baidu will bring to the table its technological expertise in the areas of machine learning, deep learning and big data analysis.

"We look forward to the successful integration of technology and traditional insurance business through this cooperation," said Gu Yue, Chairman and President of China Pacific Property Insurance.

This latest joint venture is subject to approval by the China Insurance Regulatory Commission.

Baidu is looking to foray into China's growing auto segment and has also invested $50 million in Bitauto holding, a leading content and marketing services company in Chinese auto industry. The company also holds interest in Uber China as well as in Uxin Ltd, a used car auction company.

Apart from these investments, Baidu is looking to solidify its position in upcoming autonomous car segment. The company is currently testing its self-driving cars in Wuhu and Beijing and expects to start mass production of such cars in coming five years, as previously reported.

Baidu is one of the leading technology companies in the world and its Baidu Maps app is used by more than 100 million car owners in China. 

TagsBaidu, Bitauto, China Pacific Property Insurance, Baidu insurance, Baidu car insurance, Baidu auto insurance, China Pacific Insurance