Hong Kong’s Insurance Authority 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 Fast Track scheme was introduced by the IA in September 2017 to provide a dedicated queue for newcomers seeking to operate solely through digital distribution channels.

Applicants for Fast Track authorization must possess an innovative and robust business model, while satisfying all the prevailing regulatory requirements on solvency, capital and local asset requirements to ensure the interests of policy holders are duly protected. The first life virtual insurer under Fast Track was authorized in December 2018 to Bowtie.

Commenting on the approval Clement Cheung, CEO, Insurance Authority shared that the approval of new players  under the Fast Track programme will facilitate wider application of Insurtech in Hong Kong and provides the opportunity for both consumers and the industry to improve the customer experience, enhance inclusiveness.