Hong Kong digital insurers such as OneDegree, Bowtie Life expand offering to tap tech-savvy clients, but yet to challenge traditional firms
- Weight of virtual insurers is still extremely low, in terms of premium and claims, compared to traditional insurers, analyst says
- OneDegree has ambitions of becoming a top three general insurer, digital firm says
Hong Kong’s digital insurers are expanding their product ranges to tap tech-savvy customers who buy their policies online, but are years away from mounting a challenge to the city’s traditional insurers with their armies of agents and brokers.
“As of today, the weight of virtual insurers in the Hong Kong landscape is still extremely low, in terms of premium and claims, compared to traditional insurers,” said Arthur Roiret, manager at Sia Partners. “Virtual Insurance models will remain limited for years to come as insurance agents and brokerages are still a dominant distribution method.”
Digital or virtual insurers are being encouraged in Hong Kong as part of efforts by the city’s government to promote fintech development in tandem with innovations globally. And the trend is catching on.
“We have seen our customers grow by 30 per cent every month, as tech-savvy customers like to buy products online,” said Alvin Kwock Yin-lun, a former JPMorgan banker and co-founder of OneDegree, which is among the four digital insurers launched in Hong Kong over the past two years.
OneDegree is expanding its product range with the ambition of becoming a top three general insurer in Hong Kong in the “medium term”, the company said. Currently, it is not even in the top 10.
