Hong Kong-based InsurTech startup OneDegree has reportedly raised HK$200m (US$25.5m) from a number of investors.
The company has closed a KY$100m ($12.7m) Series A investment, with an additional HK$100m available for future financial support at its option, subject to regulatory approval, according to the South China Morning Post .
The company hasn’t disclosed the investors in the round, but co-founder Alvin Kwock described the investors to the publication as ‘some well-known insurance and technology investors.’
Founded in 2016, the company is currently in the process of obtaining authorisation to operate as a digital insurer in Hong Kong, under the Insurance Authority’s “Fast Track” scheme.
With the licence application in the final stages, the company plans to use the Series A funds to advance technology development, expand product portfolio, support customer acquisition, and serve as the risk capital for its pending insurance operation.
Investors have committed to provide an additional HK$100m after the licence is granted
OneDegree provides an end-to-end digital insurance platform which enables consumers to purchase and manage their insurance policies. Its back-end enables advanced analytics and automation of traditionally manual process across claims processing, policy management, and customer service.
The InsurTech supports all personal-line general insurance and health insurance products, and partners with organisations in insurance, reinsurance and health services to pilot its technology.
According to a recent report by FinTech Global, global InsurTech funding gained traction in 2017 with $2bn capital invested. The report found that the loss of momentum in global InsurTech investment after 2015, a record year for sector with over $2bn-worth of funding, was simply due to the volatility of large deals.
Funding reached $2bn last year, an increase of nearly $400m from 2016’s total. However, while the total investment volume was lower than the amount deployed in 2015, there were 74 more transactions completed.
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