Digital insurer Avo has received a virtual general insurance licence from the Insurance Authority of Hong Kong that will enable the company to market its insurance products online.
Avo has become the first insurer to obtain virtual general insurance licence in Hong Kong.
The adoption of online model will enable the company to slash its operational expenses and offer its services including property, travel, fire and car insurance on competitive prices.
Insurance Authority of Hong Kong CEO Clement Cheung Wan-ching told South China Morning Post that: “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.”
General insurer Asia Insurance holds 51% stake in Avo, while the remaining stake is held by Zhang Lei, founder and CEO of Hillhouse Capital.
Winnie Wong, CEO of Avo as well as Asia Insurance CEO, told the publication: “Avo is a younger brand and more appealing to millennials and young professionals, while Asia Insurance is an established brand. The two will have different market positioning.
“The above factors gave us strong reasons to establish a different company and brand to achieve the most desired outcome.”
Earlier in December last year, the Insurance Authority of Hong Kong granted the first virtual life insurance licence to Bowtie Insurance.