Hong Kong-based virtual insurer, Bowtie, has recently closed a Series B2 funding round, securing $34.9 million. The funding was led by Sun Life Hong Kong Limited, with significant contributions from Mitsui & Co., Ltd.
The investment demonstrates the confidence and optimism that investors have in Bowtie’s ability to revolutionize access to health insurance. The funds will be used to enhance the company’s technological capabilities and expand its reach in addressing Hong Kong’s $886 billion protection gap.
Bowtie plans to use the funds to accelerate product development and strengthen its integration with healthcare providers. The ultimate goal is to improve the customer experience through unique differentiators.
In recent years, Bowtie has been at the forefront of the shift to online channels in the insurance industry. This move has significantly increased its market share in the direct channel market, from 2.9% to 8.5%. In the first half of 2023, Bowtie maintained its position as the leader in Hong Kong’s direct sales channel, capturing approximately 30% of the market share for the second consecutive year.
Bowtie’s digital health and insurance offerings have been the driving force behind its growth. The company has demonstrated that digital-first insurance firms can combine cost-efficiency, convenience, and premium service quality.
Michael Chan, Co-Founder and Co-CEO of Bowtie, expressed confidence in the company’s growth metrics, brand strength, and customer value. With a yearly recurring revenue of $25 million and over 100,000 customers, Bowtie has established itself as a key player in the industry.
Bowtie has also experienced significant growth in its critical illness products, with a surge of over 100% in the last year. Additionally, the company has made substantial progress in the group medical insurance sector, serving more than 500 small and medium-sized enterprises (SMEs) and technology-driven companies.
Clement Lam, CEO of Sun Life, praised Bowtie’s disruptive approach to insurance and expressed support for their mission of making insurance accessible to everyone. Tomoya Shishido, CEO of the Hong Kong branch of MBK Healthcare Management, representing Mitsui & Co., Ltd., commended Bowtie’s pioneering efforts to simplify insurance processes and improve preventive care, shaping the future of the industry.
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