Avo Receives First Virtual General Insurer License in Hong Kong
Hong Kong’s Insurance Authority (IA) announced on Tuesday that it has granted the first authorization for virtual general insurance under Fast Track. The license was granted to Avo, a local insurtech company providing products like health and travel insurance.
The IA introduced the Fast Track Scheme in September of 2017 to provide a dedicated application stream for newcomers who are seeking to operate primarily through digital distribution channels. Avo Insurance fit the criteria as it is a purely digital company which will sell its products online without the use of agents or brokers.
On the approval, Clement Cheung, CEO, IA said, “The first non-life virtual insurer authorized under Fast Track is a local company, whose strategic focus is providing innovative and customer-centric products, like health and travel insurance, for under-served segments through bespoke digital distribution channels without the involvement of intermediaries.”
In further comments, Cheung shared that the approval of new actors under the Fast Track Programme will facilitate wider application of Insurtech in Hong Kong and provide the opportunity for both consumers and the industry to improve the customer experience while enhancing inclusiveness.
The first life virtual insurer under Fast Track was authorized in December 2018 and awarded to Bowtie.
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