Avo gets first virtual general insurance licence

The Insurance Authority of Hong Kong granted its first virtual general licence on to Avo Insurance as it tries to encourage wider use of technology by Hong Kong’s insurers.

Avo Insurance is a purely digital company which will sell its products online without the use of agents or brokers, thus keeping costs down.

Online insurance services have taken off well in other markets such as the US, Europe and even mainland China recently. Clement Cheung Wan-ching, chief executive of the Insurance Authority, believes the virtual licences will help foster Hong Kong’s insurance technology, or insurtech, sector.

“Insurtech provides the opportunity for both consumers and the industry to improve the customer experience, enhance inclusiveness, build a sustainable fintech ecosystem, reduce the compliance burden and induce greater supervisory efficiency,” Cheung said.

In December the regulator gave out its first virtual life insurance licence to Bowtie Insurance, which has hired former Financial Secretary John Tsang Chun-wah as a senior adviser, according to a report by South China Morning Post.