Virtual insurance company OneDegree Hong Kong announced the raising of investment funds, the amount of which amounted to $27 million.
The company intends to use the received financing to expand the scope of its activities in Asian countries. The firm also plans to spend part of these funds to support developments in the field of artificial intelligence.
The firm received money from global financial institutions and existing sponsors, including Gobi Partners, BitRock Capital, and Sun Hung Kai & Co. This was told by the co-founder of the company Alvin Kwock during a conversation with journalists. He did not disclose any information about the new investors, noting that the beginning of strategic partnerships with them will be announced later.
Initially, this company provided pet insurance services. Then the firm’s services began to extend to fire-fighting goods, parcels, and household and health goods. The company also ensures digital assets against theft, hacking, and exposure to malicious software.
The previous round of financing of the firm took place in 2021. Then the company raised investment funds in the amount of $28 million. Alvin Kwock says that the firm needs to conduct another round of financing before considering the issue of the first public offering of the stock. He also said that profit is expected by the end of 2024.
Last year, the digital insurer received an offer to be included in the SPAC list. In response to this, Alvin Kwock stated that the company would not go public until the scope of its activities was expanded and profit was secured.
The Hong Kong Insurance Authority reports that by the end of 2021, the loss of the digital insurer from underwriting amounted to HK$74.4 million. A year earlier, this figure was equal to HK$28.1 million.
Currently, Hong Kong is making efforts to ensure that this special administrative region of China becomes the center of the crypto business. Against the background of this activity, the popularity of digital asset insurance services is growing. This business is currently demonstrating the dynamics of intensive growth.
The Securities and Futures Commission, which is the regulator of the Hong Kong market, requires that all companies have insurance coverage, that in this case performing the function of a kind of permission to obtain a license to create a platform for trading virtual assets.
Alvin Kwoсk said that since the beginning of this year, OneDegree has received more than 100 requests for digital asset insurance. He also noted that half of the potential customers are not in Hong Kong.
The digital insurer has partnered with Microsoft to integrate the tech giant’s artificial intelligence service into its automated chat box and cybersecurity solutions.
OneDegree provides its technology platforms to Malaysian, Taiwanese, and Vietnamese insurance companies. In the foreseeable future, the firm intends to enter the Middle East market.
As we have reported earlier, Resistant AI Raises $11 Million for Security Solutions.