Fourth virtual insurer granted new authorization under Fast Track

4 May 2020

The Insurance Authority (IA) today (4 May 2020) granted authorization under Fast Track to the fourth virtual insurer, which is affiliated with a locally listed company with a strong track record of insurtech research and development.

The newcomer will focus on medical, term life and critical illness insurance products targeting youngsters and underserved market segments. Building on a clustering approach and support from strategic partners, it seeks to tailor solutions catering for unfulfilled customer needs. Through the extensive application of big data analysis and artificial intelligence, this virtual insurer has the capability to provide instant quotations, perform remote customer due diligence, and settle claims with minimum turnaround time. Another important niche is the ability to forge an alliance with its sister company, which holds a virtual banking licence in Hong Kong.

“We are excited by the interplay between virtual banking and virtual insurance, which can help deliver service optimization, value enhancement and customer convenience,” said Mr Clement Cheung, Chief Executive Officer of the IA. “The current four virtual insurers, each with a unique background and business model, offer the prospect of accelerated Fintech development in Hong Kong, thereby bolstering our competitiveness as an innovation hub.”

Fast Track was launched by the IA in September 2017 to provide a dedicated queue for firms seeking to enter the insurance market in Hong Kong using solely digital distribution channels. Applicants seeking authorization through this channel must possess an innovative and robust business model, while satisfying all the prevailing regulatory requirements on solvency, capital and local asset requirements.

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