ARTICLE
14 December 2017

Insurance Predictions 2018: Insurtech Era Will Dawn In Hong Kong

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Clyde & Co

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Clyde & Co is a leading, sector-focused global law firm with 415 partners, 2200 legal professionals and 3800 staff in over 50 offices and associated offices on six continents. The firm specialises in the sectors that move, build and power our connected world and the insurance that underpins it, namely: transport, infrastructure, energy, trade & commodities and insurance. With a strong focus on developed and emerging markets, the firm is one of the fastest growing law firms in the world with ambitious plans for further growth.
2018 is likely to be the year of innovation for the insurance market in Hong Kong.
Hong Kong Insurance

2018 is likely to be the year of innovation for the insurance market in Hong Kong.  Re/insurers' interest in Insurtech will ramp up on the back of two recently launched pilot initiatives by the newly established Hong Kong Insurance Authority to promote new technologies in the insurance market – Fast Track and Insurtech Sandbox.

This is great news for insurers as the Sandbox allows them to test their unprecedented insurance technology/products under a controlled environment.  Fast Track accelerates the authorisation process for purely digital insurers, so that the speed-to-market for new entrants to distribute solely via online channels is improved.  However, opportunity also comes with threats and we foresee that insurers will need to reinforce their ability to handle potential risks, such as data privacy.

To maximise the benefits of the regulator's supportive stance, we predict that insurers will blend technology with insurance products, from distributing microinsurance products via Chatbots to using Internet of Things devices to collect customer data, thereby monitoring risks more accurately and offering more competitive prices to customers.

You can read the rest of our insurance predictions  here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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