Hong Kong-based virtual insurer OneDegree is significantly expanding its presence in the Middle East following successful operations in Dubai. The company has secured 20 contracts since entering the region in 2023 through a partnership with Dubai Insurance, primarily insuring firms licensed by Dubai’s Virtual Assets Regulatory Authority. Notably, OneDegree has reported zero claims or security incidents to date, attributing its success to robust cybersecurity measures and a strong underwriting framework.
OneDegree achieved profitability in Q3 2024, driven by strong performance in its digital asset and pet insurance lines. The company has also signed a reinsurance agreement with Saudi Arabia’s Walaa Cooperative Insurance in 2024. Dubai Insurance has invested in OneDegree twice over the past two years, demonstrating local confidence in the insurtech firm.
Expansion Plans
The company is now targeting further expansion across the Gulf Cooperation Council (GCC), with specific targets including Qatar, Bahrain, Kuwait, and Oman. Co-founder Alvin Kwock Yin-lun views the Middle East not only as a growth market but also as a strategic entry point into Europe and Africa.
Market Trends
This expansion aligns with broader regional trends. The Middle East and Africa’s insurtech market was valued at US$76.9 million in 2024 and is projected to grow to over US$109 million by 2030. High digital and mobile penetration, such as Saudi Arabia’s 99% internet usage, combined with regulatory sandboxes in countries like the UAE and Saudi Arabia, is driving insurtech growth.
OneDegree’s move reflects a broader trend of Hong Kong firms pivoting towards the Middle East amid tightening Western market conditions and growing China-Arab economic ties. The company’s strong cybersecurity credentials have helped it gain trust in the digital asset insurance space, a sector gaining traction as the region diversifies beyond oil.
The article discusses OneDegree’s expansion plans and the growing insurtech market in the Middle East and Africa.
