Hong Kong-based digital health insurance startup OneDegree has extended its Series A round to surpass $30m.
The A2 round was led by global FinTech investor BitRock Capital, with participation also coming from Cyberport Macro Fund, Cathay Venture. Several investors from the initial Series A round contributed to the extension, but it is unclear who these were. Last year, OneDegree raised $25.5m through the Series A round.
Following the close of the round, the InsurTech will look to scale its end-to-end digital insurance platform and launch new product offerings in Hong Kong. Additionally, it will explore growth opportunities within the ‘Greater Bay Area’ initiative, which includes nine cities in south China and include Hong Kong and Macao.
Founded in 2016, OneDegree is an online insurance platform and is currently under consideration for a digital insurer license in Hong Kong. The company aims to simplify the buying of health insurance, removing paper-based processes for coverage, claims and receipts.
Consumers can purchase policies for as little as HKD 3 ($0.38) for HKD 1m ($127,400) in annual medical coverage.
OneDegree leverages a back-end system capable of automating a variety of manual insurance processes and utilise data and analytics capabilities.
Bitrock Capital managing partner Dr. Alfred Shang said, “The emergence of new players with game-changing technology such as OneDegree is creating a momentum that cannot be ignored. Millennials as a consumer group are savvier and they want more personalisation and convenience. It’s inevitable that the insurance industry will have to rethink the traditional model and innovate to keep up with the changing demographic.”
Funding into the InsurTech space shot up in 2018, with nearly double the amount of capital being deployed compared to 2017, FinTech Global data shows. Last year, $3.1bn was invested across 138 InsurTech investments, a 192 per cent increase over 2017, when $1.6bn was deployed over 142 deals.