The Hong Kong Monetary Authority (HKMA) and the Insurance Authority (IA) recently co-hosted the Insurtech Seminar: Unlocking Bancassurance Potential with Insurtech. The event brought together around 400 professionals from the insurance, banking, and financial technology sectors to explore the potential of Fintech in enhancing bancassurance services.
Carmen Chu, the HKMA’s Executive Director (Banking Supervision), emphasised the significant untapped potential in bancassurance and the synergy between banking and insurance.
Banks’ vast customer bases, extensive distribution networks, and insurance companies’ expertise in risk diversification and product offerings can deliver integrated and comprehensive financial solutions to meet diverse customer needs.
![Carmen CHUHKMA Insurtech](https://fintechnews.hk/wp-content/uploads/2024/04/CarmenCHU.jpg)
“Data is a key enabler of this synergy. By combining data collected by banks and insurers, we can provide a 360-degree view of the customer for more tailored services,”
said Carmen.
She highlighted the role of advanced technologies, including artificial intelligence (AI), predictive analysis, and Distributed Ledger Technology (DLT), in creating a seamless and efficient bancassurance ecosystem.
Carmen pointed out that the bancassurance market is projected to reach US$1.7 trillion by 2027, with a compound annual growth rate of over 6 percent. In Hong Kong, one-third of retail banks have already implemented insurtech, and all retail banks are expected to adopt insurtech to support their bancassurance services by 2025.
To address the challenges and risks associated with innovative practices and expanding data exchange, Carmen emphasised the importance of a balanced approach.
The HKMA Executive Director encouraged financial institutions and insurtech service providers to utilise the authority’s cross-sectoral Fintech Supervisory Sandbox, which allows innovative proposals, including bancassurance initiatives, to be tested before full launch.
Building on the success of the Sandbox, Carmen announced the HKMA-IA Open API Framework Linkage. This initiative aims to streamline the mutual adoption of APIs for potential use cases across the banking and insurance sectors.
Over 250 bancassurance-related APIs are currently available on the Open API directory hosted by the Hong Kong Science and Technology Park.
The HKMA remains committed to working closely with all stakeholders to embrace a collaborative approach through open dialogues, sharing insights, challenges, and opportunities, and leveraging data and technology to promote customer-centric solutions and drive sustainable growth.
Featured image credit: Edited from Freepik