Insurtech Talent Development in Hong Kong – From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline

10 From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline Hong Kong’s insurance industry has entered into the new era of digitalization, creating new opportunities for the industry and promoting the sustainable development of the insurance market.19 The city is currently home to five virtual insurers, namely OneDegree, Bowtie Life Insurance, Avo Insurance, ZA and Blue. While Blue became a digital insurer from a traditional firm in 2018 through an acquisition, the other four were licensed by the Insurance Authority (IA) following the new licensing regime for virtual insurers introduced in 2019. With an established pedigree in banking and finance, Hong Kong has also built a vibrant fintech sector that has been seeing exceptional growth during the last several years and in turn positively influenced the rapid development of insurtech in the city. The Hong Kong Monetary Authority (HKMA) has expanded its fintech development road map to include insurance firms and brokers.20 Working alongside the Securities and Futures Commission and the Insurance Authority, this new road map of activities under the Fintech 2025 plan which was first launched by the HKMA in June 2021, will encourage financial services companies to invest in technology to enhance their services in wealth management, insurance and green finance. The Regulatory Environment and Support The Insurance Authority (IA) is Hong Kong’s major insurance regulator and oversees the financial conditions and operations of authorized insurers in the city.21 In addition to the IA, three self-regulatory bodies, namely the Hong Kong Federation of Insurers (HKFI), the Hong Kong Confederation of Insurance Brokers (HKCIB) and the Professional Insurance Brokers Association (PIBA), oversee the activities of insurance intermediaries in Hong Kong. Insurtech innovations are encouraged by all the regulators in Hong Kong through several incentives and measures, such as funding, general support and the development of relevant expertise. The Enterprise Support Scheme (ESS) under the Innovation and Technology Fund (ITF) of Hong Kong encourages investments in research and development (R&D) activities and provides funding of up to HK$10 million for approved projects on a matching basis. There is also a pool of HK$5 billion available for ventures and research projects in technology areas including insurtech.22 19 Insurance Authority (2022, September). Insurance Digital Onboarding . https://www.ia.org.hk/en/digital_onboarding/ promotion_of_insurtech_development.html 20 Hong Kong Monetary Authority (2023, August). A Bridge to the Future: Hong Kong Fintech Promotion Roadmap . https://www. hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2023/20230825e1a1.pdf 21 Baker McKenzie (2022). Guide to Insurtech Innovation and Utilization . https://resourcehub.bakermckenzie.com/en/ resources/asia-pacific-insurance/asia-pacific/hong-kong/topics/guide-to-insurtech-innovation-and-utilization 22 Ibid.