OneDegree is Hong Kong’s top virtual insurer for second year

Company celebrates four-year anniversary with substantial growth

OneDegree is Hong Kong’s top virtual insurer for second year

Insurance News


Hong Kong-based virtual insurer OneDegree marks its fourth year in operation this April, maintaining its position as the city's top-earning digital insurance provider for the second year in a row. Following a successful Series B funding round in June 2023 that garnered US$55 million, the company has seen considerable growth in its business operations.

Since its inception in April 2020, OneDegree has utilized technology to streamline insurance processes for the Hong Kong market, offering more efficient and user-friendly services. This strategy has led to substantial cost savings and allowed the company to improve coverage options for its customers. In 2023, OneDegree reported a 59% increase in gross written premiums, totaling over HK$180 million, representing a significant jump from its first year.

The company also reported a 40% enhancement in its financial performance in 2023, which OneDegree deputy chief executive Emily Chow said has contributed to its progress toward sustainable profitability.

“We have not only witnessed robust revenue growth but have also made continuous improvements in operational efficiency. In 2023, financial performance experienced significant improvement of 40%, establishing a solid foundation as we strive to achieve sustainable profitability…We are confident that OneDegree will be the first virtual insurer in the market to reach the break-even point,” Chow said.

OneDegree has made significant strides in several insurance categories. It launched pet insurance in 2020, which has seen a steady increase in demand, with a 48% rise in premiums in 2023. Their pet insurance plan includes unique benefits such as up to 90% reimbursement rates and covers all breeds of cats and dogs from 13 weeks to 11 years old.

In terms of property insurance, OneDegree introduced a competitive fire insurance plan in 2021, boasting the lowest premium rate in Hong Kong at 0.038% and a Best Price Guarantee. This offering has significantly disrupted the traditional market with an 86.6% increase in premiums in 2023.

It also introduced critical illness insurance in 2021, then home insurance options in 2022, adding features like a home appliances warranty and landlord protection. These additions contributed to a near doubling of home insurance revenue in 2023.

“As OneDegree enters its fifth year, we will prioritize enhancing the customer experience by upgrading our offerings and strengthening their competitiveness in the market,” Chow said.

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