Hong Kong’s insurance authority approved a digital insurance joint venture between U.K.-based Aviva, one of China's tech giants and a private equity firm.
The Hong Kong regulator approved the venture agreed between the U.K. insurer, Tencent and private equity firm Hillhouse, Aviva said in a statement. The three companies agreed to a deal in January that involved selling shares in Aviva Hong Kong and turning it into a digital insurer. Called Aviva Life the business aims to streamline processes including the need for distribution through agents or financial advisors.
The insurance industry in Hong Kong has traditionally been a high-maintenance business with rising costs and thinning margins. Swiss bank UBS believes the rise of insurtech will transform the insurance industry particularly throughout the emerging markets in Asia, meaning agency forces will gradually shrink.
