Hong Kong-based virtual insurer Bowtie has successfully wrapped up a $34.9 million Series B2 funding round, the company has confirmed. The latest financial injection was led by Sun Life Hong Kong Limited, and saw significant contributions from Mitsui & Co., Ltd.
Bowtie’s announcement highlighted that the investment underscores the trust and optimism its investors have in the company’s ability to revolutionize how health insurance is accessed by customers. The newly acquired funds are set to boost Bowtie’s technological capabilities and further its reach in addressing Hong Kong’s $886 billion protection gap.
Leveraging these funds, the firm aspires to fast-track its product development and integrate more closely with healthcare providers. The ultimate aim is to bring about a transformation in customer experience through unique differentiators.
The recent years have seen Bowtie spearheading a shift to online channels in the insurance space. This transition has caused the direct channel market share in the insurance sector to soar, witnessing a threefold increase from 2.9% to a whopping 8.5%. For the first half of 2023, Bowtie has yet again dominated Hong Kong’s direct sales channel with a market share of approximately 30%, retaining its top position for the second year running.
Driving its growth is Bowtie’s robust digital health and insurance offerings, a clear indicator that digital-first insurance firms can deliver an unmatched blend of cost-efficiency, convenience, and premium service quality.
Michael Chan, Co-Founder and Co-CEO of Bowtie, remarked:
With a yearly recurring revenue of $25 million and a customer base exceeding 100,000, our strong growth metrics, brand strength, and customer value are evident.
Bowtie also spotlighted the remarkable growth of its critical illness products, which surged by over 100% in the last year, and its extensive inroads into group medical insurance, catering to more than 500 SMEs and tech-forward firms.
Sun Life’s CEO, Clement Lam, lauded Bowtie’s transformative approach, saying:
Bowtie has successfully disrupted conventional thinking around insurance. We’re honored to support their mission of making insurance accessible to everyone.
Tomoya Shishido, CEO at the Hong Kong branch of MBK Healthcare Management, representing Mitsui & Co., Ltd., also praised Bowtie’s pioneering initiatives, which aim to simplify insurance processes and enhance preventive care, shaping the future of the industry.