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

13 In sum, the IA is assisting industry participants in the development of sustainable digital distribution channels while protecting the interests of policy holders. The IA is also facilitating product innovation and diversification, enhancing insurance services, and promoting the long- run development of insurtech in the city.26 As a result, there have been interesting developments in Hong Kong such as the rise of several innovative insurtech companies, like MediConCen, a Hong Kong-based insurtech startup and the first company in Hong Kong to utilize blockchain technology to provide their clients with automatic experience for insurance claims and medical consultation,27 and YAS Digital Limited, a blockchain-based insurtech company founded in Hong Kong that offers on-demand microinsurance.28 Initiatives by the government and the regulators have increased the awareness about insurtech in Hong Kong and resulted in many insurtech innovations having been conceived and applied. For example, some insurers in Hong Kong have introduced mobile apps and wearable devices to keep track of the fitness activities of the policy holders for their life and health insurance products. Based on these analytics, these insurers offer premium discounts to the policy holders if their physical activity or exertion levels are higher – a proxy for diminished health and life risks. The discounts offered by the insurers in turn incentivize the policy holders to exercise regularly. This has a double advantage for them – a fuller, healthier life and increased financial savings. A major implication of all of this is that the underwriting risks of insurers might also improve when insurtech is used to influence the behavior of clients. The industry’s progress in insurtech demonstrates that the initiatives led by the government and the regulators have been effective in bringing increased value to the market, improving the adoption and diffusion of insurtech, as well as enhancing services and driving more benefits for insurance clients in Hong Kong. Insurtech Development in Hong Kong 26 Insurance Authority (2022, September). Insurance Digital Onboarding . https://www.ia.org.hk/en/digital_onboarding/ promotion_of_insurtech_development.html 27 CityU HK Tech 300 Angel Fund (2022). MediConCen Limited . https://www.cityu.edu.hk/hktech300/start-ups/angel-fund- teams/mediconcen 28 YAS MicroInsurance (2023). About YAS . https://yas.io/en/about-us