Hong Kong’s first pure digital insurance venture, Tencent-backed Blue, to start selling policies

Hong Kong’s first purely digital life insurance company will start selling policies in the city from Wednesday, looking to use its direct selling capability to offer lower prices in the crowded local market.

Blue, 20 per cent owned by Chinese internet giant Tencent and 40 per cent by British insurer Aviva, will offer a life and a critical illness policy the internet, its chief executive said in an interview.

“By turning from a traditional insurance company into a digital insurance company, we do not need to pay any commission to middlemen. We can thus charge policies at a lower price and we will transfer the benefit to customers,” said Charles Hung Tak-chow.

The Hong Kong government is keen to promote so-called insurtech in the city. Last September the regulator, the Insurance Authority, announced a range of measures to allow insurance companies to use new technology to sell products or process claims to cut down costs and enhance service.

Several of the city’s big players, including AIA, MetLife and Manulife, have introduced new technology such as big data to analyse risk and determine premiums, as well as for dealing with claims. The insurance sector employs nearly 90,000 people in Hong Kong, and companies have traditionally used agents, brokers and banks to sell their products.