Hong Kong online insurance start-up gets $30m Series A
Hong Kong-based Bowtie Life Insurance has raised $30 million in Series A funding and become the first company in the territory to receive a “virtual” license to provide online-only services.
Sun Life Financial confirmed it had made a strategic investment in Bowtie. The company's other backer is reportedly Hong Kong X Technology Fund, an angel investment vehicle tied to the Hong Kong X Foundation. The foundation was established by Sequoia Capital China to help build a new start-up ecosystem in Hong Kong.
Under the Insurance Authority of Hong Kong's fast-track pilot scheme, Bowtie can offer insurance products in or from the territory through its digital distribution channels. The company can operate outside the conventional distribution infrastructure involving insurance agents, banks, and brokers. It will start offering products in the first half of 2019, with an initial focus on medical insurance plans.
"Insurtech is beneficial to both the industry and consumers as it stimulates innovation, enhances value proposition, improves customer experience and broadens financial inclusiveness," said Clement Cheung, CEO of Insurance Authority, in a statement. He noted that Bowtie wants to provide products with a simple structure, high protection element, and low premium.
From Sun Life's perspective, the investment is part of a broader digital transformation strategy. The company plans to back other start-ups that are using technology in operational efficiency, product distribution, and value creation for clients.
"Bowtie will create a scalable platform that offers insurance products and services to the new generations. I believe this investment and potential future collaboration with Bowtie will strengthen Sun Life's position in Hong Kong and accelerate our digital transformation roadmap," said Fabien Jeudy, CEO of Sun Life Hong Kong (pictured, right, with Bowtie founders Michael Chan and Fred Ngan, second left and third left).
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