Aviva, Hillhouse Capital Group and Tencent Holdings Limited have completed the transaction to develop a digital insurance joint venture in Hong Kong. The process started about a year ago and is part of Aviva’s push to transform its HK business from a traditional insurer into a fundamentally digital operation
The joint venture has now been approved by the Hong Kong Insurance Authority and is expected to start operating under its new corporate structure during the first half of 2018. Aviva currently lags behind rivals such as Prudential in the China/HK market in terms of market share, so the move should all Aviva to expand and win new customers.
According to the FT only about one percent of life insurance sold in Hong Kong is via digital platforms, with middlemen and agents taking commissions on sales. Aviva hopes to by-pass this old, established system by reaching new customer online.
Aviva, Hillhouse and Tencent announced in 2017 their agreement to develop an insurance joint venture in Hong Kong, by which Hillhouse and Tencent have acquired a combined 60% shareholding in Aviva Life Insurance Company Limited.
Allianz also has a joint venture in China with Hillhouse Capital.