Hong Kong’s insurance industry worth US$66 billion (HK$552 billion) in the past years has provided a fertile ground for the digitalisation push by innovative insurtech startups in the region. 

The current pandemic has created a positive shift to accelerate digital adoption by consumers which can be leveraged by startups looking to enhance customer-centricity in their products and services. 

This development has been spurred on by digital tech park Cyberport which houses over 30 insurtech companies seeking to accelerate the industry’s digital transformation. 

Among them are Cyberport incubatees PortfoPlus and 10Life, who are on a mission to remove the complexities from insurance and help customers take better control of their policies.

PortfoPlus is a platform that connects advisors and users to better understand customers’ insurance coverage needs. The platform uses big data and artificial intelligence (AI) to analyze whether the coverage of each policy is considered adequate, allowing customers to identify gaps and choose the most suitable and comprehensive protection plans.

Speaking to Fintech News, Colin Wong, founder of PortfoPlus, said it was common practice for Hong Kong residents to have multiple insurance policies from multiple insurance companies, making it sometimes difficult to understand clearly how they are covered.

“This creates some hassles in cases of emergency as people often forget what types of insurance they bought or simply have no details on hand,”

Wong said.

“With that in mind, we have created a digital platform that allows users to consolidate all their policies in one place so they can easily retrieve their insurance portfolio, perform AI-powered analysis and review their protection and coverage needs.”

Users of PortfoPlus can share their policy summary with their loved ones so they can know where to seek assistance when needed, Wong said. They can also invite their insurance advisors to view and manage their insurance portfolio, allowing insurers to have a better understanding of their clients’ current protection and advise them accordingly.

“Our mission has always been ‘know your coverage, be well protected’,”

Wong said.

“We are designing a platform that helps the general public to manage their insurance policies, understand their protection needs and be well protected by their insurance. All our functions in the platform are basically designed to serve these three goals.”

PortfoPlus doesn’t sell or recommend any particular insurance product plan, nor does it work with any insurance company to promote their products, Wong said, making the platform and analytics tools completely unbiased.

10Life is another insurtech startup and Cyberport incubatee focusing on providing customers with unbiased, professional information. The startup offers a comparison platform that covers all types of insurance plans in Hong Kong. Based on 10Life’s analyses and ratings of different products, customers can easily find, compare and choose a plan that meets their needs and budgets.

“With limited information customers either end up with unsuitable products that they do not understand, and/or not getting insurance that they need,”

Thomson Ho, co-founder of 10Life, told Fintech News.

“The 10Life insurance information platform allows customers to learn, compare and buy life and medical insurance anytime anywhere, without the pressure of hard sell and complexity.”

Claiming more than 100,000 unique monthly users, the 10Life platform was designed with the customer in mind, Ho said, and aims to bring more transparency to the complex insurance world, allowing customers to be truly in control of their insurance decisions. In addition to that, the platform lets users purchase insurance products directly from an insurer and engage with a licensed advisor.

With COVID-19 forcing consumers to move online, both Ho and Wong said they witnessed a significant shift in customer behavior, in addition to raising demand for insurtech solutions and digital platforms from the traditional insurance industry,

“Users are definitely more aware of their insurance coverage, and wonder if they will receive any protection under their current medical and critical insurance-related plans if being diagnosed with COVID-19,”

Wong said.

“Meanwhile, advisors also realize that they cannot solely rely on their usual practice of face-to-face meetings to interact with clients, and are now more open to the use of fintech as a new means to approach their clients and prospects.”

When asked about 10Life’s plans moving forward, Ho said the company is now working on expanding its userbase and insurer partnerships, hopefully capitalizing on the post-COVID-19 shift in the traditional insurance business. 10Life also has plans to develop algorithms to track factors driving customer interests in different insurance companies and products, and optimize its offerings and user experience.

As of PortfoPlus, Wong said the company is currently working on revamping its consumer-side platform, which will be launched later this month. The new version will feature a smoother onboarding experience, and an entirely new user-friendly interface. Moving forward, Wong said PortfoPlus will be adding new features including Match with Adviser, which will allow users to match with a financial professional.

Digital tech park Cyberport

Digital tech park Cyberport has been in operation in 2004 and has since grown a massive community of more than 1,500 companies, among which nearly 400 fintechs. Cyberport is now rapidly emerging as an insurtech powerhouse, housing Hong Kong’s four licensed virtual insurance providers Bowtie, Avo Insurance, OneDegree and ZA Insure among others.

Cyberport offers startup programs and assists entrepreneurs in bringing their ideas to the next level. It runs initiatives such as the Cyberport Enterprise Network, the Cyberport Investors Network, and the Cyberport Technology Network, which focuses on facilitating collaboration, as well as the Cyberport Macro Fund, which invests in community startups.

Through its incubation programme, Cyberport has been instrumental to the success of insurtech startups by facilitating introductions with prospective clients. In addition to that, the startups are also given access to the vast network of investors and fintech partners for those who are just starting out or looking to scale up. 

This strong support enables them to navigate the heavily regulated industry with ease. 

The incubation programme alumni remain active in Cyberport’s community given the opportunities to partner with incumbents in order to drive a positive change in the industry.