The Insurance Authority (IA) in Hong Kong has authorised a firm to operate as a virtual insurer, the fourth company to receive such a licence.
The business was not named by the regulator, but it said it is affiliated to a locally–listed company which focuses on insurtech research and development.
The virtual firm will provide life, medical and critical illness cover, especially targeting young people and underserved client segments.
It plans to use big data analysis and artificial intelligence to give instant quotations, perform customer due diligence, and settle claims in very little time, the IA said.
Little information has been provided by the regulator about the four firms that have successfully secured a virtual licence. However, the latest may be the first to offer life cover.
Online interplay
Its sister company holds a virtual banking licence in Hong Kong as well, which could open doors to a possible cooperation.
“We are excited by the interplay between virtual banking and virtual insurance, which can help deliver service optimisation, value enhancement and customer convenience,” said Clement Cheung, chief executive 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.”
The authorisation was granted through the regulator’s Fast Track, which was set up in September 2017 as a separate channel for those companies looking to enter the market through digital distribution channels only.
