April 25, 2024

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Samsung Fire and Marine Insurance and internet giant Kakao have decided to set up a digital nonlife insurance company, they said on Oct. 23.
“We are pushing for a digital insurance consortium that combines Kakao and Kakao Pay’s IT technology and platform influence with Samsung Fire’s insurance business to meet demands for nonlife insurance that are expanding along with changes in lifestyle,” an official at Kakao Pay said, adding that the companies are planning to apply for a preliminary approval of the financial authorities this year. 

Kakao Pay is expected to hold the management rights of the expected digital nonlife insurance firm while Kakao and Samsung Frie will be strategic investors.

“We have just formed a task force and started discussions,” a Samsung Fire official said. “We intend to do something new, such as introducing a lifestyle product, different from a traditional insurance product.”

A digital nonlife insurance company sells online-only insurance products on mobile and computers. Earlier this month, Carrot General Insurance, the first digital nonlife insurance firm backed by Hanwha General Insurance, SK Telecom and Hyundai Motor, received approval from the Financial Services Commission to start services.

By Park Ga-young (gypark@heraldcorp.com)