Insurance for Pets: Hong Kong internet companies explore pet insurance business

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02:31

Hong Kong insurance companies are exploring a new area for business, pets. As CGTN'S Patrick Fok finds, there could be plenty of room for the niche market to grow.

Jacquelin Wong's golden retriever is more than just part of her family – Monnay comes to work with her most days of the week, so she's arguably part of the family trading business too, even if she doesn't seem in much of a mood for work on this day!

JACQUELIN WONG MONNAY'S OWNER "She's like a kid to us."

Besides mild allergies and occasional skin issues, Jacquelin says Monnay doesn't suffer from any medical conditions, but golden retrievers are known to be prone to cancer - it's estimated nearly two-thirds of them die of it.

JACQUELIN WONG MONNAY'S OWNER "That's the main concern that I have for her and I know that any sort of cancer treatment is quite expensive."

Jacquelin says she's looked into medical insurance for Monnay, but just couldn't find any policy with substantial coverage for pets in Hong Kong.

JACQUELIN WONG MONNAY'S OWNER "If we needed to put her into any sort of treatment or surgery, it just didn't make sense."

Hefty operating costs mean insurance firms tend to focus on high premium products like life insurance. As a result, small markets like the pet segment get overlooked.

ALVIN KWOCK FOUNDER & CEO, ONEDEGREE "There is very little incentive for traditional insurers to go and sell those products."

Alvin Kwock is the founder of online insurer OneDegree. The startup recently raised more than US$25 million to finance its plan to target Hong Kong's pet insurance market. At present, he says, less than 3% of pet owners here are covered in a market with more than half a million cats and dogs.

ALVIN KWOCK FOUNDER & CEO, ONEDEGREE "That's as big as the population of kindergarten students plus primary school students and they really treat them like kids."

PATRICK FOK HONG KONG "OneDegree hasn't had its license approved yet, but it's among a batch of online insurers that's applied under a newly-launched fast-track scheme designed to boost tech players in the industry."

That could help trim an application process that can take traditional insurers as long as 18 months. Kwock hasn't revealed details of the products OneDegree will offer, but says high-end coverage for things like pet surgeries will be included. He hopes that, and a user-friendly application will draw consumers. But creating awareness could be his biggest challenge.

IRIS TAM, DIRECTOR WOW ASIA "Educating people takes time. Buying insurance for your pet is like a long-term thing. It's not like bam you need to go buy it and everybody goes and buys it."

With the right strategy though, there could be legs for growth. PATRICK FOK, CGTN, HONG KONG.