Fintech development continues to ramp up in Hong Kong with the latest issuance of the first virtual general insurance license to Avo.
Avo will be a pure digital insurer and the new license will allow it to sell a range of related products including property, travel, fire and car insurance.
In addition to distribution, it will also leverage technology to enhance its offering such as the usage of big data or machine learning to conduct more precise risk profiling or effective pricing which could lead to cost-savings for clients.
Target Segments
Avo is 51 percent owned by Asia Insurance and the major shareholder intends to develop a differentiated strategy between the two business lines focused on separate target client segments (the remaining 49 percent is owned by Zhang Lei, founder and chief executive of investment firm Hillhouse Capital).
«Avo is a younger brand and more appealing to millennials and young professionals, while Asia Insurance is an established brand. The two will have different market positioning,» said Winnie Wong, CEO of Avo and Asia Insurance in an «SCMP» report.
«The above factors gave us strong reasons to establish a different company and brand to achieve the most desired outcome.»
According to Wong, Asia Insurance is primarily focused on B2B revenue with direct clients making up less than 5 percent of its business.
