Hong Kong virtual insurer OneDegree on track to turn a profit in 2024 on back of popular coverage of household pets and digital assets: CEO
- OneDegree CEO Alvin Kwock said the firm’s flagship pet insurance business has already ‘reached scale’ and become profitable
- He indicated that nearly half of the world’s top-20 cryptocurrency exchanges have contacted OneDegree about its OneInfinity digital-asset insurance
That optimistic projection stems from the positive performance of OneDegree’s pet and digital-asset insurance operations. The company’s flagship pet insurance business, which was launched in April 2020, has “reached scale” and become profitable, Kwock told the South China Morning Post.
He said the firm’s enterprise-facing digital-asset insurance service, OneInfinity, has recently become profitable after signing up more than 30 clients, without receiving any claims to date.
It already accounts for 10 per cent of OneDegree’s revenue, according to Kwock. He said the firm expects that figure to swell to 30 per cent in the fourth quarter this year.
Global interest in Hong Kong’s crypto exchange licensing regime has been strong, according to Kwock. He indicated that nearly half of the world’s top-20 crypto exchanges have contacted OneDegree about its OneInfinity insurance.
Online insurer OneDegree raises US$27 million to expand digital assets coverage
Hong Kong’s new regulatory regime for centralised crypto exchanges, in effect since June this year, puts in place a broad range of exacting requirements for these enterprises to operate in the city. One of the mandatory requirements is for crypto exchanges to have insurance or compensation arrangements that would cover potential losses.
The firm has so far only accepted 25 per cent of all insurance applications over the past two years, according to Kwock.
Hong Kong virtual insurer OneDegree widens cryptocurrency coverage to NFTs
OneDegree has conducted five rounds of fundraising to date. In June, the company raised US$27 million from investors that include Gobi Partners, Sun Hung Kai and Bitrock to finance the expansion of its digital-asset insurance portfolio.
On potential plans to go public, Kwock said OneDegree’s current focus is on achieving profitability, after which it may consider an initial public offering or other capital market initiatives.