This year, the focus goes beyond technology to mining business insights around how cloud enables strategic industry trends such as Open and Virtual Banking and Insurance, Security and Compliance, Data Analytics and AI/ ML, FinTech and RegTech, Surveillance and more through sharing of best practices and use cases. In sessions led by customers, partners, industry leaders and AWS subject matter experts, you’ll learn how AWS helps financial institutions to focus on the innovation and outcomes that truly drive business forward. Business stakeholders, market makers, and technology owners will all learn something new, valuable and actionable.

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Virtual Insurers:
New Tools for a New World
Michael Chan
Co-founder and Co-CEO
Bowtie Life Insurance Company

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Agenda
What is Bowtie?
Who are we?
What is our purpose?
Rebuilding an insurance company

3. What is Bowtie?

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What is Bowtie? – A “new breed” insurer
First authorization under
the “Fast-Track” scheme
for virtual insurers in
Hong Kong
“Full Stack” insurance
company focusing on life
& health insurance
USD 30m Series A
Truly “cloud native” –
Bowtie was born in the
cloud

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Who is Bowtie? – A motivated, diverse team
Local insurtech startup
core team has been
working together for 4
years now
40+ people strong
From industry: 10-20
years experience
From startups: 27 year
old (average age)
Attracting newtalent to the industry
San Francisco,NewYork,Chicago, London,
Sydney,Waterloo,Guangzhou, Macau
Uber, Gogovan, Moneyhero,Casetify,
AIA, Prudential, Manulife, FWD,HSBC, UBS,HKMA
Computer Science,Medicine, Design, Math,
Quantitative Finance, Philosophy, Actuarial Science,
Medical Engineering, Hotel Management

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The team

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We believe insurance is fundamentally good
But we have an image problem. Insurance is a meaningful social
good but isn’t seen that way by many.
of customers are satisfied
with their interactions with
insurance service providers
Source: Morgan Stanley 2014
of customers are willing to
purchase insurance online
Source: Accenture 2013
< -30 NPS
“Worst-in-class” industry
customer experience KPIs
Source: Bain & Co 2014
< 60% 71%

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Consumer trust across industries
0% 10% 20% 30% 40% 50% 60% 70% 80%
Financial Advisory
Insurance
Financial Services (Aggregate)
Credit Cards
Banks
Chemicals
Energy
Metals
Food & Beverage
Consumer Electronics
Technology
Trust in Industries (Global)
Source: Edelman Trust Barometer

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Value-creation shifts from assets to liabilities
5%
15%
54% 59%
100%95% 100%
85%
46% 41%
US Japan Korea Indonesia China India
Liabilities
Asset
Contribution to Earnings (before tax, extraordinary loss, and dividends provisions)
Source: McKinsey research
▪ US$1.8 trillion1 health
protection gap across Asia, or
about 10% of household
income
▪ Rising middle class, medical
advances leading to increased
medical spending above
general inflation
▪ As markets develop, insurance
company profitability is
increasingly driven by
addressing this protection gap
vs. asset management spreads
1 Swiss Re 2018 study

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Technology shifts…
All of the 2018 Forbes Fintech
50 run on Amazon. Costs,
complexity and security all tilt
to the cloud.
Traditional IT budgets go to
support & maintenance,
diverting away from new
innovations.
66%
of IT budgets go
to patches
Fintech startups are
“born in the cloud”
Transformations are challenging
projects for incumbents
100%
run on the
cloud

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Our direction
▪ We believe insurance is fundamentally good
▪ But some historical practices, such as products and service levels, have
given our overall industry a bad reputation with the public
▪ We see major changes up ahead
▪ Rising consumer and regulator expectations:
▪ Increasing expectation gaps
▪ Increasing protection gaps
▪ Natural evolution of insurance industries towards protection
▪ Technology advancements
▪ … all above evidenced by money and talent moving
▪ Bowtie is likely just one of the first “new breed” insurance companies
Others will follow and help catalyze industry developments

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12
Rebuilding an insurer

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Some guiding principles…
▪ Transparency: friendly, high-value products
▪ Value = protection levels
▪ Not necessarily cheap, but good value and “just fitting” actual needs
▪ What an actuary would buy
▪ Restrictions: non-conventional distribution channels
▪ Our survival depends on moving the needle from “push” to “pull”
▪ Investing heavily into the servicing of protection products
▪ “Customer-centric” has a deeper meaning for us
▪ Moving from “administration” to “service” – ecosystem integrations

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Back to the drawing board
Designing a “new breed” insurance company
Day 1: Setup
Business planning, shareholder and governance structure,
technology and cybersecurity, getting regulatory approval.
Day 2: Design & Experiment
Product design, new UI/UX and back-end business processes
to support user-directed flows, test with customers to iterate
on new content and business processes.

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Underwriting fairly
Online Underwriting
Multi-layered underwriting questions
Richer experience developed by our
doctor in consultation with senior
underwriters and reinsurers.
Transparent loadings
No hidden fees, everything is transparent.
Underwriting loadings and exclusions are
presented explicitly and explained in plain
language. No broad-based exclusions.
Traditional
Manual, back-and-forth,
asynchronous
Simplified
Fast, but high rejection rates
coupled with higher premium rates
Bowtie’s Approach
Immediate decisions, fairer pricing,
=> more people insured
But overcoming…
- ambiguous questions
- health data protection

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Smooth flows
Tell me about yourself
Answer a few health questions to
personalize your quotes. Everything in
just a few taps
Validate your ID
Submit a photo of your HKID, and our AI will
validate your identity in seconds
Secure Payment
Login with two-factor authentication and
pay online using credit cards of your
choice

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Empowering Clients
Support All Channels
Customers can contact us via online live
chat, direct messaging services, voice calls
or walk-in. Easy to get in touch.
Our Care Team
Free care services (nurse and medical doctors)
for new diagnosis of cancer or major illnesses.
Reminder that there’s a real human standing on
the other end
Single System for
Everything
Integrated system to gather all the information
needed, managing complaints/ claims/
enquiries much more systematically and
efficiently.

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https://www.bowtie.com.hk/zh/about-us/join-us

19. Thank you!
© 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Michael Chan
michael.chan@bowtie.com.hk