Hong Kong-based virtual insurer OneDegree is ramping up its presence in the Middle East with plans to introduce new products, including mining risk insurance and smart contract wallet coverage, co-founder Alvin Kwock Yin-lun confirmed this week.
Since entering the region in 2023 through a partnership with Dubai Insurance, OneDegree has secured 20 contracts, insuring the majority of firms licensed by Dubai’s Virtual Assets Regulatory Authority.
Notably, the insurer has reported zero claims or security incidents to date, attributing its success to strong cybersecurity protocols and a robust underwriting framework.
The company reached profitability in Q3 2024, buoyed by strong performance in its digital asset and pet insurance lines.
In 2024, it also signed a reinsurance agreement with Saudi Arabia’s Walaa Cooperative Insurance. Dubai Insurance has invested in the company twice over the past two years, underscoring local confidence in the insurtech firm.
Now, OneDegree is eyeing further expansion across the Gulf Cooperation Council (GCC), with targets including Qatar, Bahrain, Kuwait, and Oman. Kwock views the Middle East not only as a growth market but also as a strategic entry point into Europe and Africa.
The 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 expected to grow to over US$109 million by 2030. High digital and mobile penetration – such as Saudi Arabia’s 99% internet usage – alongside regulatory sandboxes in countries like the UAE and Saudi Arabia, is fueling insurtech growth.
OneDegree’s move also reflects a pivot by Hong Kong firms towards the Middle East amid tightening Western market conditions and growing China-Arab economic ties.
The company’s cybersecurity credentials have helped it win trust in the digital asset insurance space, a sector gaining traction as the region moves to diversify beyond oil.
Can OneDegree become the region’s go-to digital asset insurer? Let us know what you think.
