Bowtie Secures US$34.9 Million Series B2 Funding to Fuel Expansion and Innovation
[14 September, 2023 — HONG KONG] Bowtie, Hong Kong's first virtual insurer1, is thrilled to announce the successful completion of a US$34.9 million Series B2 funding round. The round was led by main investor Sun Life Hong Kong Limited, with further participation by Mitsui & Co., Ltd. This reaffirmed their confidence in Bowtie's long-term development, given its proven traction in changing how customers access health insurance.
From left to right:
Mr. Fred Ngan, Co-Founder and Co-CEO of Bowtie;
Mr. Michael Chan, Co-Founder and Co-CEO of Bowtie;
Mr. Tomoya Shishido, CEO at Hong Kong Branch of MBK Healthcare Management;
Mr. John Tsang, Senior Advisor of Bowtie;
Mr. Clement Lam, CEO at Sun Life Hong Kong Limited
Bowtie’s exponential growth has led to the overall expansion of the online channel, contributing to a threefold increase in the direct channel market share of the insurance industry from 2.9%2 to 8.5%3. With a market share of around 30%4 in the direct sales channel, Bowtie once again ranked number one for the first half of 2023 in Hong Kong’s direct channel, a position held for two consecutive years.
Bowtie’s growth is driven by its competitive digital insurance and health offerings, which have consistently received the highest “Value for Money”5 score among customers in the insurance sector for two consecutive years, according to YouGov, a global opinion and data analytics company. This is a testament to the fact that digital insurance companies are able to offer the best combination of price, convenience, and service quality to customers.
1Bowtie is the first company authorized by Hong Kong’s Insurance Authority under its Fast Track Pilot Scheme
2The percentage of policies sold through direct sales channel compared to the total number of policies sold among long term business in all channels
3With reference to the Provisional Statistics For Long Term Business for 2018-2022 published by the Insurance Authority
4According to Insurance Authority’s Provisional Statistics for Long Term Business 2021-2023, Bowtie Life ranked first in number of new individual paid policies through Direct channel in Hong Kong
5According to YouGov’s Hong Kong BrandIndex’s data from 2021-2022
Michael Chan, Co-Founder and Co-CEO of Bowtie, expressed enthusiasm about the company’s strong growth trajectory. He stated, “With annual recurring revenue of US $25 million and over 100,000 customers, we have demonstrated solid fundamentals in growth, brand, and customer value. We would like to express our gratitude to investors for their continued trust and support. In today’s competitive business environment, investors not only seek top-line growth from startups but also a clear path to profitability, which makes our achievements even more precious.”
In addition to the core VHIS products, Bowtie’s growth is further supported by repeated purchases from existing customers. Take critical illness products as an example, which have experienced a remarkable growth rate of over 100% in the past year. During the same period, Bowtie has achieved a significant milestone in group medical insurance and wellness solutions, serving more than 500 small and medium-sized enterprises and technology-embracing companies across various industries, including fintech, telecommunications, and airlines.
Sun Life Hong Kong Limited, an early investor in Bowtie which led this Series B2 funding round, commended the company’s ground-breaking business model. They acknowledged that Bowtie’s successful growth proved the unlimited potential of virtual insurance. Clement Lam, CEO at Sun Life Hong Kong Limited, stated, “Bowtie has challenged the myth of “insurance is sold, not bought,” which was previously unimaginable. We take great pride in our support of Bowtie as they pioneer a new category of health insurer. Together, we are dedicated to making insurance more affordable and accessible to all.”
Mitsui & Co., Ltd. recognized Bowtie’s efforts in building a modern clinic and launching products in collaboration with new hospitals and wellness partners to provide preventive care. Mr. Tomoya Shishido, CEO at Hong Kong Branch of MBK Healthcare Management, stated, “Bowtie’s innovative initiatives have the potential to reshape the insurance landscape. Their approach aligns incentives and breaks down complexities between insurers and healthcare providers, marking a crucial step in developing a value-based healthcare ecosystem, which is why Mitsui is keen to invest.”
With the new funding, Bowtie is poised to further expand its operations and technologies to fill Hong Kong’s US $886 billion6 protection gap. Bowtie aims to accelerate product innovation and vertical integration with healthcare providers to create differentiations that fundamentally change the customer experience.
6 Insurance Authority’s Mortality Protection Gap Study 2021
About Bowtie
The Bowtie Life Insurance Company Limited is an authorised life insurance company and Hong Kong‘s first virtual insurer. Its vision is to bridge the health protection gap and transform the way people access healthcare in Asia. By combining modern technology and medical expertise, Bowtie offers an agent-free, commission-free, and convenient online platform for customers to quote, apply, and claim for health insurance plans anytime, anywhere. Bowtie is backed by Sun Life Financial, Mitsui & Co, and supported by leading international investors. Currently, Bowtie has raised more than HK$680 million and provided over HK$60 billion of insured value to families. Stay up to date at www.bowtie.com.hk.
About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2023, Sun Life had total assets under management of C$1.37 trillion. For more information, please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Sun Life Financial Inc. is the holding company of Sun Life Assurance Company of Canada. Sun Life Hong Kong Limited (Incorporated in Bermuda with limited liability) is a wholly-owned subsidiary of Sun Life Assurance Company of Canada.
About Mitsui & Co
Mitsui & Co. is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries. The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders. Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials, and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition. Visit www.mitsui.com for more information.
The Bowtie Life Insurance Company Limited is an authorized life insurance company and Hong Kong’s very first virtual insurer approved. Through the use of modern technology and medical expertise, Bowtie offers an agent-free, commission-free and more convenient online platform for customers to quote, apply and claim for Voluntary Health Insurance Scheme (VHIS) anytime anywhere. Bowtie is ranked first in the direct channel sales throughout 2021.
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