Hong Kong’s vibrant startup ecosystem, home to over 3,000 startups, underscores its role as a global center for innovation, especially in the fintech and insurtech sectors.
The city’s 550+ fintech companies and approximately 30 insurtech startups are revolutionising the insurance industry with technology-driven solutions focused on customer needs.
Projected to grow from HK$67 billion (US$8.6 billion) in 2024 to HK$85.6 billion (US$10.9 billion) by 2028, with a compound annual growth rate (CAGR) of 6.3%, according to GlobalData, the Hong Kong general insurance market is on the brink of significant expansion.
This piece delves into the leading insurtech companies in Hong Kong, showcasing their pivotal role in transforming the insurance landscape.
By integrating cutting-edge technology and introducing groundbreaking products, these firms are reshaping how insurance operates and establishing benchmarks for the global insurtech scene.
This evolution heralds a shift towards more efficient, technology-infused, and personalised insurance experiences, impacting traditional insurance models and how we engage with them.
Bowtie: First virtual insurer
Bowtie uses AI and big data to offer personalised, online medical insurance products like the VHIS Standard and Flexi Plans.
The company has recently closed a US$34.9 million (HK$273 million) Series B2 funding round, led by Sun Life Hong Kong Limited and further supported by Mitsui & Co., Ltd.
Bowtie has expanded its services to more than 500 small and medium-sized enterprises, including those in fintech, telecommunications, and airlines, providing group medical insurance and wellness solutions.
This recent funding will enable Bowtie to further its mission of closing Hong Kong’s substantial protection gap, estimated at US$886 billion (HK$6.7 trillion).
OneDegree: Merging digital precision with a human touch
Insurtech OneDegree represents a significant force in redefining digital insurance in Hong Kong. The company offers various products that cater to multiple needs, from health to cyber protection.
Through its subsidiary, Pawfect Care, it extends its innovative approach to pet insurance, covering veterinary expenses and highlighting its commitment to comprehensive care.
OneDegree streamlines the insurance process using AI and cloud technology. The company has secured an investment from the Dubai Insurance Company for its Series B funding round as part of a partnership to offer digital asset insurance in the United Arab Emirates (UAE). The sum was not disclosed.
The insurtech had previously announced that it had raised US$55 million for its Series B last June from existing investors Gobi Partners, Sun Hung Kai and Bitrock.
In addition, OneDegree is seeking collaborations with global stablecoin issuers to engage in the Hong Kong Monetary Authority’s (HKMA) stablecoin sandbox. Co-founder Alvin Kwock expressed the company’s dedication to this initiative on LinkedIn, highlighting its goal to improve risk management practices and streamline the licensing process for stablecoin issuers.
BoC Life: Digital innovation in traditional banking
BoC Life illustrates the seamless integration of digital innovation within traditional banking frameworks.
As a subsidiary of the Bank of China (Hong Kong), it offers eVantage, an online savings plan with guaranteed returns, showcasing a commitment to combining financial security with digital ease.
In addition, BoC Life’s pioneering green insurance plan underscores its dedication to sustainability alongside technological progress.
ZA Insure: Setting standards in digital insurance
ZA Insure, a fully digital insurer born from a collaboration between ZhongAn Technologies International Group and Fubon Life Insurance (Hong Kong), exemplifies the fusion of technology and insurance expertise. The company has committed HK$ 1 billion in paid-up capital.
The company’s AI-driven approach simplifies the insurance journey, making it more accessible and user-friendly, thus setting new benchmarks in the industry.
Blue: Simplifying insurance through technology
Blue, a digital life insurance company based in Hong Kong, is a joint venture whose ownership is divided among Aviva (40 percent), Hillhouse Capital (40 percent), and Tencent (20 percent).
The insurtech partnered with software company Adobe for its cloud platform to create engaging and personalised experiences for its customers.
By combining technology and insurance, Blue offers a user-friendly and commission-free online platform, allowing customers to access and purchase various flexible and economical insurance plans conveniently.
With a comprehensive portfolio that includes savings, life, critical illness, accident, and medical care insurance plans, along with microinsurance options, Blue caters to its customers’ diverse insurance needs.
Avo Insurance: Charting the future with accessibility
Avo Insurance, a virtual licensed general insurer in Hong Kong, is driven by a mission to make insurance accessible and enjoyable. Backed by notable investors and with a significant capital injection for further development,
With the backing of Asia Insurance, Hillhouse Capital, and Two Sigma, Avo is dedicated to making the insurance experience as easy and enjoyable as possible.
By focusing on the entire customer journey, from education and policy purchase to service and claims, Avo is not just selling insurance; it’s enhancing lifestyles and contributing to the development of Hong Kong as a Smart City.
With a capital boost of HK$260 million in 2021, Avo is poised for further innovation and growth in the insurtech sector.
MediConCen: Blockchain-powered insurance claims
Hong Kong insurtech MediConCen has recently raised US$6.85 million (HK$53 million) in a Series A funding round led by HSBC Asset Management.
With the support of existing investors like G&M Capital and ParticleX and new backers like Wings Capital Ventures, MediConCen’s total funding has reached US$12.7 million (HK$99.3 million).
This investment fuels their plan for international expansion into the Middle East and Southeast Asia. Leveraging blockchain technology, MediConCen aims to automate medical insurance claims, reduce fraud, and enhance efficiency.
The startup has already made significant strides, assisting over 1 million policyholders and partnering with 16 insurance companies. Its use of blockchain to tackle real problems sets MediConCen apart, illustrating the potential of new technologies to address longstanding industry challenges.