Hong Kong-based insurtech startup MediConCen–an honoree of the inaugural Forbes Asia 100 to Watch checklist in 2021–introduced Wednesday it raised $6.85 million in a Sequence A funding spherical led by HSBC Asset Administration, as insurance coverage options stay a brilliant spot amid a regional funding downturn in fintech.
Taking part within the spherical had been current traders G&M Capital and ParticleX—a startup accelerator funded by billionaire Tang Yiu’s funding agency, Shine Works. They had been joined by new investor Wings Capital Ventures, a fintech-focused VC agency backed by the Hong Kong household that based Wing Lung Financial institution. The Sequence A spherical brings the six-year-old startup’s whole funding raised to $12.7 million. MediConCen declined to reveal its present valuation.
“We’re supportive of MediConCen’s intention to enhance this expertise by simplifying and rushing up the claims journey, together with guaranteeing that the declare quantity is honest, with a expertise spine that helps the scaling up of those advantages,” mentioned Kara Byun, head of fintech, enterprise and progress investments at HSBC Asset Administration, in an announcement in regards to the funding spherical.
The contemporary capital will go in direction of worldwide enlargement within the Center East and Southeast Asia, MediConCen mentioned. the startup claims it has assisted over 1 million policyholders and works with 16 insurance coverage corporations, together with AIA’s Blue Cross, Heng An Normal Life, China Life and digital insurer Bowtie, which was an honoree of the 2023 Forbes Asia 100 to Watch checklist.
MORE FROM FORBESForbes Asia 100 To Watch 2023By Forbes Asia Group
Based in 2018 as an incubatee at Cyberport, a Hong Kong government-backed high-tech industrial park, MediConCen makes use of blockchain expertise to automate medical insurance coverage claims. By utilizing digital signatures and good contracts, the startup claims it might probably cut back fraud.
“I see quite a lot of current insurtech startups, they’re both constructed by the individuals working contained in the insurance coverage trade, or by a pure tech firm…they’re making an attempt to make use of previous expertise to resolve previous issues,” says William Yeung, cofounder and CEO at MediConCen. “We’ve change into the bridge to use the newest AI and blockchain expertise into an actual downside that exists, and that differentiates us from our friends, who’re both robust in insurance coverage or robust within the expertise aspect.”
Nonetheless, third-party insurtech options might take time to realize traction with incumbent insurers, as these established gamers could also be extremely risk-averse and lack the required supporting infrastructure to embrace new options, in accordance with the Hong Kong Financial Authority’s fintech promotion roadmap from final August, citing survey respondents. Third-party fintech options contributed roughly 70% of the digital transformation efforts of monetary establishments in Hong Kong, wrote the roadmap’s authors.
“Insurance coverage is a good enterprise, and so they don’t have an urgency to alter as a result of enterprise is sweet,” says Jonathan Wu, founding accomplice of Wings Capital Ventures. “In Asia, the penetration is low, so they should push their brokers to promote extra insurance policies…they understand their expertise wants, and adoption for digital options is accelerating.”
Fintech funding throughout the Asia-Pacific area fell to $10.8 billion in 2023, down greater than 75% from $51.3 billion in funding in 2022, in accordance with a February report by KPMG. Lack of funding exits and traders focusing their consideration on AI are among the causes for the decline, the report defined. A rising variety of startups are taking intention at enhancing the actions of monetary establishments, whereas insurtech and wealthtech are rising areas of curiosity for traders, the report added.
Insurtech was a serious discipline for the Forbes Asia 100 to Watch lists. Along with final yr’s honoree, Bowtie, which secured $35 million in a Sequence B2 funding spherical final September led by insurer Solar Life Hong Kong, the checklist featured Hong Kong-based OneDegree, an honoree of the 2022 Forbes Asia 100 to Watch checklist, acquired an undisclosed funding from Dubai Insurance coverage to assist the startup broaden within the United Arab Emirates.
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