Author
Bowtie Team
Updated on
2025-07-22
Disclaimer: This article is translated with the assistance of AI.
Hong Kong now boasts 4 virtual insurers, and with online insurance purchases on the rise, many wonder: “Can you trust virtual insurance?” Bowtie dives into the 2023 Hong Kong FinTech Adoption Index Study from PolyU’s School of Accounting and Finance to reveal if it’s truly reliable – and why it’s a smart choice for savvy buyers!
Is Virtual Insurance Reliable in Hong Kong?
The Hong Kong Polytechnic University’s School of Accounting and Finance, in collaboration with AI investment startup Asklora, released a “ Hong Kong Fintech Adoption Index Survey ” in 2023 to measure Hong Kong residents’ acceptance of fintech and their satisfaction with related experiences. The study surveyed over 2,000 Hong Kong residents aged 18 or above, examining their usage in five fintech areas: digital payment services (DP), virtual banking (VB), virtual insurance (VI), virtual securities (VW), and virtual assets (VA).
Do Hong Kong People Trust Virtual Insurance?
Virtual Insurance is Highly Trusted, with Highest Usage Among Middle-Aged and Highly Educated Individuals
(Table 1) shows that respondents with higher education levels have a higher usage rate for virtual insurance, indicating that those with greater knowledge trust virtual insurance and actively take out policies.
Additionally, (Table 2) compiles the virtual insurance usage rates across age groups, revealing that respondents aged “30 – 49” have the highest rate (53%), followed by those aged “18 – 29” (30%). This suggests that middle-aged individuals, often focused on long-term financial planning, have the highest acceptance of virtual insurance, proving its reliability.
Compared to Other Fintech, Virtual Insurance Faces the Lowest Resistance
The survey also found that over 71% of respondents have no plans to use fintech services in the future, mostly older individuals (50 or above) who are satisfied with existing services. However, as shown in (Table 3), only 63% have no plans to use virtual insurance in the future—the lowest figure among the five fintech areas.
Moreover, the study explored respondents’ distrust in fintech services, and (Table 4) reveals that only 33% distrust virtual insurance, a figure just above the 32% for “digital payment services.”
Quick Summary: From the charts and figures above, it’s clear that virtual insurance is becoming a hot new trend. It’s not just tech-savvy youngsters embracing it, but also middle-aged folks who prioritize financial planning, proving the service is absolutely “trustworthy”.
Why Trust Virtual Insurance?
Regulated by the Insurance Authority
Hong Kong has very strict regulations for insurance companies, requiring not only sufficient capital and solvency reserves but also appropriate management and shareholder selections.
What counts as sufficient capital and solvency reserves?
For sufficient capital, the Insurance Authority sets a minimum requirement of HK$20,000,000. As for solvency reserves, insurance companies must maintain a solvency adequacy ratio of at least 150%.
So, what does appropriate management and shareholder selection mean?
Appropriate management means that before appointing directors or controllers, insurance companies must obtain prior approval from the Insurance Authority. During the fit and proper assessment, the IA considers the character, qualifications, and experience of the applicants.
What if an insurance company goes bust? What happens to policyholders? Check the IA’s protection guidelines
Equipped with “Reinsurance Arrangements”
” Reinsurance ” refers to insurance companies purchasing coverage to transfer part or all of their risks to other insurers, thereby reducing their own risk exposure. Under the Insurance Ordinance, all insurance companies must have adequate reinsurance arrangements to share the risks for the types of insurance they underwrite.
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