OneDegree sees 14-fold sales surge in home insurance before Typhoon Saola
OneDegree sees 14-fold sales surge in home insurance before Typhoon Saola | Insurance Business Asia
Property
OneDegree sees 14-fold sales surge in home insurance before Typhoon Saola
Residents urged to take proactive measures against future extreme weather events
Property
By
Roxanne Libatique
OneDegree Home Insurance experienced a significant surge in sales last year, with a 14-fold increase in a single day just before a major windstorm.
The spike occurred as Typhoon Saola approached Hong Kong in late August 2023, prompting a wave of policy purchases as residents sought protection against the impending extreme weather.
Hong Kong residents took proactive measures against extreme weather
OneDegree, which maintained its position as Hong Kong’s top-earning digital insurer for the second year in a row, said the heightened awareness and proactive measures taken by residents were likely influenced by the Hong Kong Observatory’s warnings and the recent history of severe weather events.
Last year alone, Hong Kong faced Typhoon Saola and a black rainstorm within a month, leading to insurance claims of HKD 360 million and HKD 1.54 billion, respectively.
One notable case involved a policyholder in the New Territories whose home sustained severe water damage during the black rainstorm on Sept. 7-8, 2023. Water entered the residence, damaging 88 items, including mattresses, sofas, and appliances.
OneDegree Home Insurance provided approximately HK$280,000 in compensation, which included coverage for two months of temporary accommodation for the family. This type of coverage addresses costs associated with temporary lodging if a home becomes uninhabitable due to accidental damage.
Insurance’s role amid increasing extreme weather events
The Insurance Authority of Hong Kong (IA) highlighted the importance of insurance in mitigating losses from natural disasters.
IA chairman Stephen Yiu Kin-wah emphasised in 2023 that while natural disasters are unavoidable, insurance can significantly reduce the financial impact on those affected.
“While natural disasters are mishaps, insurance coverage does play a role in mitigating losses incurred to those affected. These events underscore the social value of insurance and remind us of the importance of identifying protection needs, proactively managing risks, and addressing protection gaps,” he said.
OneDegree’s claims process
OneDegree has streamlined its claims process to ensure quick and efficient service. It allows policyholders to complete the claims process online. Once a claim is submitted, a surveyor coordinates directly with the policyholder, reducing the time needed for on-site assessment.
The insurer guarantees a five-working-day review process upon receiving all necessary documents, with the entire claim potentially completed in two weeks.
“When designing home insurance, it is crucial to empathise with policyholders and understand their coverage needs. OneDegree recognises that prompt claims processing is a top priority for policyholders after a disaster,” said Emily Chow, deputy chief executive of OneDegree. “Our streamlined process eliminates the complexities typically associated with traditional insurance claims, which involve communication between policyholders, intermediaries, surveyors, and insurers.
“Policyholders can directly contact our claims team for updates on claim assessment. Moreover, OneDegree guarantees a five-day claims review upon receiving all necessary documents and information. Our efficient claims process can be completed in as little as two weeks, surpassing the months-long resolution typical of traditional insurers. This allows policyholders to receive swift compensation, aiding in home restoration and the resumption of normal life.”
Hong Kong residents urged to prepare for future typhoons
With the Hong Kong Observatory forecasting up to five typhoons this year, OneDegree encourages residents to secure home insurance to protect against potential damages.
May already saw an unusual pattern of heavy rain, with five amber rainstorm warnings and two red rainstorm warnings on May 4 and 21.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
