OneDegree, the platform that is categorized among the initial virtual insurers in Hong Kong, has collected up to $27M in a recent fundraising campaign. The purpose of the respective campaign is to finance the enhancement of the company’s portfolio responsible for the insurance of ious products in the digital asset eco. The latest investors are joining Bbitrock, Sun Hung Kai, and Gobi Partners (which have also invested in the insurance platform) for the financing of the respective fundraising round. As per the report published by South China Morning Post, this fundraising endeavour is 5th of its kind since the platform was established back in the year 2021.
This reportedly comes after the $28M financing that was accomplished in 2021. The respective startup is categorized among the 4 completely online insurers which are registered as included in an initiative taken by the Hong Kong Insurance Authority. The agency, by doing this, intends to promote the utilization of additional technology in the sector of insurance. This is focused on minimizing the costs as well as increasing the services.
Contrary to traditional insurance forms, online insurance charges decreased premiums as compared with offline insurance. This is so as the cover is purchased straight from the insurer while the transfer is organized through the Internet instead of an insurance agency subsidiary. The license bans the platform from appointing agents while the sales can just be organized with the use of the apps or internet. Alvin Kwock Yin-lun (the co-founder of OneDegree) also commented on this.
The co-founder mentioned that the exclusive fundraising is witnessed after resilient progress in the revenues of the firm through coverage sales for pets, digital assets, and medical expenses. The co-founder anticipates the platform to get substantial profits in the coming year. The firm has provided more attention to providing insurance coverage for the platforms offering trading services for virtual assets. It initiated its crypto insurance back in 2021’s November by giving HK$100M cover to Hong Kong Digital Asset Exchange.
Kwock stated that the demand for insurance of digital assets will see considerable growth in the coming time. Before this, the Securities and Futures Commission introduced an exclusive regulatory regime on the 1st of June, Kwock added. He moved on to say that several trading firms will request licenses in Hong Kong and will require adequate insurance for the security of the interests of the traders and investors.
