Bowtie Life Insurance, Hong Kong’s first virtual insurer, has raised US$70 million in its series C funding round.

The round was led by existing shareholder Sun Life, which has increased its stake.

Founded in 2018, Bowtie operates entirely online but also runs physical health clinics and a customer service center in Wan Chai.

The company plans to use the new funds to integrate AI, improve customer services, and expand its clinics and workforce.

Bowtie currently has around 170 staff and expects an annual headcount growth of 10% to 15%.

Bowtie raised US$30 million in 2018 and received investment from Japan’s Mitsui Group in 2022. The company has provided US$16 billion in coverage to 200,000 customers and reached US$80 million in annual recurring revenue as of May.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Virtual insurance pioneers address Hong Kong’s protection gap

Bowtie’s success represents a significant shift in Hong Kong’s insurance landscape, where nearly half the population lacks adequate health coverage despite the city being a major financial hub.

The company has captured 5% of new Voluntary Health Insurance Scheme policies since its founding, adding approximately 1,000 new customers monthly through its direct-to-consumer digital model 1.

This $70 million funding round builds on Bowtie’s growth trajectory from its initial $30 million Series A in 2018, when it became Hong Kong’s first virtual insurer and the first new life insurance company in Hong Kong in nearly 20 years 23.

Bowtie’s hybrid approach, combining online services with physical health clinics and a customer service café, demonstrates how insurtech companies are evolving beyond pure digital plays to create more comprehensive customer experiences.

The company’s critical illness insurance product has seen over 100% growth, showing strong market adoption of its digital-first insurance model in a traditionally agent-dominated market 1.

2️⃣ Traditional insurers embrace strategic investments in digital challengers

Sun Life’s consistent investment across all three of Bowtie’s funding rounds reveals a strategic approach to digital transformation that’s becoming common among established insurers.