Hong Kong virtual insurer Bowtie gets $35m Series B
Hong Kong digital life insurance company Bowtie has closed a USD 34.9m Series B round led by the local unit of Sun Life Financial.
Mitsui & Co. also participated. It follows a USD 30m Series A in late 2018 featuring Sun Life and Hong Kong X-Tech Startup Platform, an angel fund and accelerator that is also an investor in insurance provider Seasonalife.
Bowtie, founded in 2017, positions itself as the first life insurance company in Hong Kong to receive a “virtual” license to provide online-only services. It was recognized by the local insurance authority under its Fast Track pilot scheme, which has broad goals to digitalize the industry.
In the meantime, Bowtie claims to have achieved a 30% market share in the direct sales category. It attributes the growth largely to the idea that digital insurance companies can offer the best combination of price, convenience, and service quality.
“With annual recurring revenue of USD 25m and over 100,000 customers, we have demonstrated solid fundamentals in growth, brand, and customer value,” co-founder and co-CEO Michael Chan said in a statement. “In today’s competitive business environment, investors not only seek top-line growth from startups but also a clear path to profitability, which makes our achievements even more precious.”
To date, Bowtie has raised more than HKD 680m (USD 87m) and claims to have provided more than HKD 60bn of insured value to families via an agent-free, commission-free platform covering quotes, application processes, and claims.
The company estimates that Hong Kong alone represents a USD 886bn market in terms of the local coverage gap. In recent months, it has charted growth in categories such as critical illness products and group medical and wellness products for small businesses.
“Bowtie’s innovative initiatives have the potential to reshape the insurance landscape,” added Tomoya Shishido, CEO of the Hong Kong branch of Mitsui-owned MBK Healthcare Management. “Their approach aligns incentives and breaks down complexities between insurers and healthcare providers, marking a crucial step in developing a value-based healthcare ecosystem.”
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