Hong Kong-based online insurance provider, OneDegree, has taken a significant leap in its global expansion strategy by extending its digital asset insurance services to the United Arab Emirates (UAE). In a strategic collaboration with the renowned Dubai Insurance Company, this move not only marks a milestone for OneDegree but also underscores Hong Kong’s commitment to strengthening business ties with the Middle East.
As part of its expansion initiative, OneDegree is set to work closely with the 33-year-old Dubai Insurance Company to provide comprehensive insurance solutions for digital asset firms in the UAE. Alvin Kwock Yin-lun, Co-founder, and CEO of OneDegree, revealed in an exclusive interview that the company is also in the process of establishing a new entity in Dubai. The move follows a meeting between UAE’s Economy Minister, Abdulla bin Touq Al Marri, and OneDegree during the Belt and Road Summit in September, where interest in leveraging OneDegree’s digital asset expertise was expressed.
To comply with the Virtual Assets Regulatory Authority’s (VARA) new cryptocurrency regulatory framework in Dubai, OneDegree and Dubai Insurance Company will offer a range of insurance products, including commercial crime insurance, professional indemnity insurance, and directors and officers insurance. This demonstrates OneDegree’s commitment to being at the forefront of regulatory compliance in emerging digital asset markets.
OneInfinity, the company’s digital-asset insurance service, launched in November 2021, has gained traction, turning profitable after signing up over 30 clients without any claims. Kwock emphasized the company’s cautious approach, having accepted only 25% of all insurance applications in the past two years. This prudence stems from a desire to avoid risks associated with bad actors in the industry, referencing recent scandals involving crypto exchanges like FTX and JPEX.
OneDegree, founded seven years ago, has successfully raised a total of US$85 million in funding over five rounds. In June of this year, the company secured an additional US$27 million in a series B funding round, with notable investors including Gobi Partners, Sun Hung Kai, and Bitrock. In connection with the partnership with Dubai Insurance Company, OneDegree received board approval for Dubai Insurance’s participation in its Series B funding, with Kwock indicating that the investment is substantial.
The expansion into the UAE through a strategic partnership with Dubai Insurance Company not only signifies the company’s global ambitions but also contributes to the growing collaboration between Hong Kong and the Middle East. As the digital asset landscape continues to evolve, this move positions OneDegree as a key player in providing essential insurance services and navigating regulatory frameworks in emerging markets.
The successful integration of OneInfinity in the UAE marks a promising chapter in the company’s journey, backed by robust financial support and a commitment to responsible business practices in the dynamic world of digital assets.
(Source: Xinmei Shen | SCMP)
