OneDegree Home Insurance Promoting Carbon Reduction and Waste Minimization to Mitigate Extreme Weather

2 June 2025 – In recent years, extreme weather has become increasingly frequent, with super typhoons like Saola hitting Hong Kong in the past few years. This year, the Hong Kong Observatory predicts 5 to 8 typhoons will affect the city. Extreme weather is primarily driven by climate change, as global warming raises atmospheric temperatures, destabilizing weather patterns worldwide. This has led to droughts and heatwaves globally, while in Hong Kong, heavy rains and typhoons have become more frequent and severe, posing threats to homes and household belongings.

The Insurance Authority previously reported that Typhoon Saola and subsequent black rainstorms resulted in insurance claims totaling HKD 1.9 billion. Mr. Stephen Yiu, Chairman of the Insurance Authority, commented last year, “While natural disasters are unfortunate and unavoidable, insurance coverage plays a significant role in reducing the financial losses of those affected. These events highlight the social value of insurance and underscore the importance of recognizing protection needs, proactively managing risks, and addressing coverage gaps.”

Virtual insurer OneDegree actively embraces its social responsibility, offering comprehensive coverage for losses caused by extreme weather. Common typhoon-related damages include broken windows leading to water ingress and damage to indoor belongings. OneDegree’s home insurance not only covers losses to household contents caused by such incidents but also compensates for typhoon-related window glass damage. Policyholders can opt for additional building structure coverage to protect floors, walls, and other structural components, ensuring comprehensive protection against windstorms. In cases of heavy rain, some ground-floor units may face flooding, damaging furniture and appliances or even requiring temporary relocation. OneDegree’s home insurance covers both indoor and outdoor property losses and reimburses expenses for temporary accommodation for family members or pets if the home is rendered uninhabitable due to accidental damage.

Extreme Weather Driven by Carbon Emissions and Greenhouse Effect

OneDegree Home Insurance Supports Carbon and Waste Reduction

Regarding the causes of Hong Kong’s increasing extreme weather, meteorologist and former Assistant Director of the Hong Kong Observatory, Leung Wing-Mo, stated, “Extreme weather in Hong Kong, including increasingly intense rainstorms and storm surges caused by strong winds driving seawater ashore, is directly or indirectly linked to climate change. Climate change is primarily driven by carbon emissions causing the greenhouse effect. To prevent further deterioration, we must focus on reducing carbon emissions, starting with minimizing electricity use and waste.”

Since its establishment in April 2020, OneDegree has promoted paperless operations, eliminating paper use in both policy applications and claims processes to reduce waste at the source. Since launching home insurance in June 2022, OneDegree has offered optional appliance repair coverage, covering repair costs for major household appliances without a limit on the number of repairs. This encourages policyholders to repair rather than replace faulty appliances, reducing waste and carbon emissions from improper disposal, contributing to environmental protection and mitigating extreme weather.

Due to the popularity of this coverage, OneDegree independently launched Home Appliances Warranty Insurance in November 2023, demonstrating market support for eco-friendly insurance products. To further encourage electricity conservation and renewable energy use, OneDegree has repositioned its home insurance with an environmental focus, introducing two major upgrades: a renewal premium discount with reduced electricity consumption and Optional Coverage for Solar Photovoltaic System for village houses, embodying the slogan “Insure Today, Preserve Tomorrow.”

Emily Chow, Deputy CE of OneDegree, stated, “OneDegree’s home insurance is committed to providing the most comprehensive coverage. Amid frequent extreme weather and the rise of ESG (Environmental, Social, and Governance) principles, in line with our parent company AIFT’s mission of ‘Securing the Future,’ we aim to go further with ‘Insure Today, Preserve Tomorrow.’ Through our rebranded home insurance, we encourage carbon and waste reduction, contributing to mitigating extreme weather and building a more sustainable living environment for the next generation.”

Renewal Discount with Electricity Consumption Reduction for "Power-Saving" Policyholders

Aiming to Save Electricity Equivalent to 250,000 Households Annually

Electricity consumption is a major source of carbon emissions in Hong Kong, accounting for approximately two-thirds of the city’s carbon emissions, according to government data. To address this, the government’s Hong Kong’s Climate Action Plan 2050, released in October 2021, lists net-zero electricity generation as a key decarbonization strategy. Internationally, the Paris Agreement under the UN Framework Convention on Climate Change encourages energy-efficient appliances and smart grids to reduce electricity use.

OneDegree actively encourages citizens to save electricity. Starting today, OneDegree home insurance policyholders can submit electricity bill records during renewal. If their annual electricity consumption decreases by 10% or is below 8 kWh per day (approximately 2,920 kWh annually), they will receive an additional 5% renewal premium discount, combinable with other renewal discounts. OneDegree estimates that the investment in this discount program will reach a seven-figure sum in premium discounts over five years.

According to CLP data, residential electricity consumption in Hong Kong reached 10.2 billion kWh last year, averaging 4,122 kWh per household. If OneDegree’s initiative encourages a 10% reduction in electricity use, it could save 1 billion kWh citywide, equivalent to the annual electricity consumption of approximately 248,000 households.

New Solar Photovoltaic System Rider with Up to HKD 2 Million in Protection

Beyond electricity conservation, using renewable energy like solar power helps mitigate extreme weather. The government’s Hong Kong’s Climate Action Plan 2050 aims to increase zero-carbon electricity supply, targeting net-zero electricity generation by 2050. By 2035, zero-carbon energy is expected to account for 60% to 70% of the fuel mix for power generation, with ongoing advancements in zero-carbon technologies.

Power companies CLP and HK Electric have promoted solar energy through their Feed-in Tariff schemes since 2018, encouraging village house owners to install solar systems by purchasing generated electricity at HKD 3 to 5 per kWh (HKD 5 for systems of 10 kW or below).

To support renewable energy adoption, OneDegree has included solar photovoltaic systems in village houses under its home insurance, introducing the “Building Structure and Solar Photovoltaic System Optional Coverage” with a protection limit of HKD 2 million. According to power company data, a 10 kW or smaller system generates electricity at HKD 4 per kWh. For a standard 700-square-foot village house rooftop, regulations limit usable space to about 350 square feet, allowing a 7.5 to 10 kW system. Assuming 3 to 4.5 hours of effective daily sunlight in Hong Kong, a 10 kW system can generate approximately 10,950 to 16,425 kWh annually, yielding HKD 43,800 to 65,700 in revenue, fully offsetting the premium for the “Building Structure and Solar Photovoltaic System Optional Coverage.”

OneDegree Home Insurance Covers Village Houses and Detached Houses

Accounting for 14% of Mid-Sized Units

OneDegree’s home insurance covers not only standard building units but also village houses and Detached Houses, with premiums based on usable area, without additional charges for village or standalone properties. Policies for these properties are instantly underwritten and effective, eliminating lengthy approval processes.

Due to these advantages, more village house and standalone home residents are choosing OneDegree’s home insurance. According to internal data, in 2024, village house policies accounted for 14% of mid-sized units (561–800 square feet), with a year-on-year increase of over 21% compared to 2023.

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About OneDegree Hong Kong Limited

OneDegree Hong Kong Limited (“OneDegree”) was established in August 2016, with a mission to make insurance simpler, faster and better. We received a virtual insurer licence from the Hong Kong Insurance Authority in April 2020. We are now a multi-line digital insurance business, offering protection for pet, human medical, e-commerce and home insurance to individuals; as well as professional indemnity, D&O insurance, cyber security and digital asset coverage to businesses. OneDegree’s holding company, AIFT closed its Series B round of funding at US$55 million in June 2023.

Media enquiry
Vivian Kwan
+852 9146 6322
Vivian.kwan@onedegree.hk