Hong Kong: Fourth virtual insurer granted new authorisation under Fast Track

| 05 May 2020

ZA Life - ZhongAn Technologies International Group ("ZA International")'s joint venture with Fubon Life Insurance (Hong Kong) - has obtained a digital-only insurer license from the Hong Kong Insurance Authority under its Fast Track pilot scheme.

ZA Life will serve the needs of different people under the trade name “ZA Insure”, offering protection to a wider population with innovative insurance services and products.

According to the IA, the newcomer will focus on medical, term life and critical illness insurance products targeting youngsters and underserved market segments. Building on a clustering approach and support from strategic partners, it seeks to tailor solutions catering for unfulfilled customer needs.

Through the extensive application of big data analysis and artificial intelligence, this virtual insurer has the capability to provide instant quotations, perform remote customer due diligence, and settle claims with minimum turnaround time. Another important niche is the ability to forge an alliance with its sister company, ZA Bank, which holds a virtual banking licence in Hong Kong.

Mr Clement Cheung, Chief Executive Officer of the IA, said: “The current four virtual insurers, each with a unique background and business model, offer the prospect of accelerated Fintech development in Hong Kong, thereby bolstering our competitiveness as an innovation hub.”

Fast Track was launched by the IA in September 2017 to provide a dedicated queue for firms seeking to enter the insurance market in Hong Kong using solely digital distribution channels. Applicants seeking authorization through this channel must possess an innovative and robust business model, while satisfying all the prevailing regulatory requirements on solvency, capital and local asset requirements.

ZA Insure will launch its services in the near future, with products including life insurance and critical illness insurance to cover different needs. Currently ZA Insure is fully engaged in the preparation for the official product launch, said its company statement.

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