More than 40 international and Chinese tech companies and start-ups have approached the Insurance Authority (IA) about the regulator's fast track programme to clinching digital insurance licences, according to Ms Carol Hui Mei-ying, the IA's executive director of long-term business last week.
Last October, the IA introduced the fast track programme to allow tech firms to operate online-only insurance businesses to offer direct sales of basic life insurance, travel or personal accident coverage.
Traditional insurance companies, which sell via agents and brokers, still require longer approval times of more than a year.
“One condition for applicants of the fast track licence is that they have to partner with a traditional insurance company. This is because many tech firms or start-ups do not have experience in running an insurance business and also requires long term commitment,” according to a report in the South China Morning Post citing Ms Hui.
Although no formal applications have been received so far, Ms Hui said potential candidates have been actively working on their partnerships before submitting their applications.