The buzz generated by ZhongAn Online, the first internet insurance company, has not yet cooled, and Hong Kong's insurance industry has delivered more heavyweight news.

        On September 29, the Hong Kong Insurance Authority announced the launch of two pilot initiatives—the Insurtech Sandbox and Fast Track—intended to fully promote the development and application of insurance technology.

        Specifically, the "Insurtech Sandbox" will allow authorized insurers to trial innovative insurance technology and other technology projects on a pilot basis without having to fully comply with the Authority's regulatory requirements. In the controlled environment of the sandbox, insurers can test the application of innovative technology projects and obtain real market data and user experience information before formally launching projects to the market; at the same time, policyholders' interests are fully protected in the controlled environment.

        "Fast Track", meanwhile, will provide a dedicated channel to expedite the processing of authorization applications from new insurers operating with fully digital distribution channels. Fast Track gives the Authority the opportunity to review the proposed digital distribution channels at an early stage of application approval, speeding up the approval process. Fast Track applicants, however, must have an innovative and robust business model that, through digital distribution, brings benefits to policyholders in product development, distribution, customer service and cost-effectiveness.

        Leung Chi Yan, Chief Executive of the Hong Kong Insurance Authority, said the Authority is committed to creating a regulatory environment conducive to the industry's use of innovative technology. "The insurtech pilot initiatives we have launched provide flexible arrangements on top of existing regulatory requirements, demonstrating our determination to promote technological development." The (Hong Kong) Insurance Authority will closely monitor the operation of the two pilot initiatives and may revise the arrangements in light of practical experience and market developments.

Source: 21st Century Business Herald  2017-09-30