Insurance Authority authorizes first virtual insurer under Fast Track
20 December 2018
The Insurance Authority (IA) announced today (20 December 2018) that it has granted the first authorization of a new insurer owning and operating solely digital distribution channels under the Fast Track, marking a significant milestone of Insurtech development in Hong Kong.
“The first virtual insurer approved under the Fast Track is a local startup interested in providing products with simple structure, high protection element and low premium through bespoke digital distribution channels without the involvement of intermediaries,” said Mr Clement Cheung, Chief Executive Officer of the IA.
“Insurtech is beneficial to both the industry and consumers as it stimulates innovation, enhances value proposition, improves customer experience and broadens financial inclusiveness. We are aware that many insurers are stepping up their pace of adopting Insurtech, with a view to enriching their product mix and tapping into the younger and tech-savvy generation,” he said.
“The IA is closely examining a few other applications under the Fast Track and will issue new authorizations as and when ready,” Mr Cheung added.
The Fast Track was introduced by the IA in September 2017 as a dedicated queue (i.e. an expedited and streamlined process compared with other licence applications) for newcomers seeking to operate solely through digital channels. Applicants for Fast Track authorization must possess an innovative and robust business model, while being able to satisfy all prevailing regulatory requirements on solvency, capital and local assets requirements.