Do not go gentle into that good night, old age should burn and rave at close of day; Rage, rage against the dying of the light, though wise men at their end know dark is right, because their words had forked no lightning they, do not go gentle into that good night.
Samsung rules foreign workers' insurance market
By Jhoo Dong-chan
Samsung Fire & Marine Insurance has been dominating the 1 trillion won ($883.2 million) insurance market for foreign workers here.
According to a documented released by Rep. Han Jung-ae of the ruling Democratic Party of Korea, Samsung Fire & Marine Insurance took up 95 percent of the insurance market for foreign employees in Korea.
The Ministry of Employment and Labor and Human Resources Development Service of Korea jointly select exclusive insurers for foreign workers through a competitive open bid every two years.
Of selected insurers, Samsung secured a 60 percent market share between 2006 and 2013, then managed to win 78 percent in 2015, and has come to dominate the market since 2016.
Claiming insurance business for foreign workers is lucrative because it is mandatory for local firms and foreign workers to be covered by selected insurers, Rep. Han said in a press release that “the open bid should be fair and transparent” while the labor ministry shouldn't favor a certain insurer in the process.
Samsung Fire & Marine has led a consortium for the insurance business since 2006 that other insurers such as Hyundai Marine & Fire Insurance and Heungkuk Fire & Marine have participated in as partner firms.
Samsung started dominating the insurance market from August 2016 when Hyundai and Heungkuk exited the consortium. Hanwha General Insurance accounts for the remaining 5 percent.
“It was Samsung Fire & Marine Insurance that started the consortium in the first place,” a Ministry of Employment and Labor official said. “It is natural for the insurer to obtain the dominating market position because it designed the consortium.”
Market insiders said that Samsung's dominance came as other players gave up due to the low profitability of the market.
“Insurance business for foreign workers in Korea isn't very profitable,” said a Hyundai Marine & Fire Insurance official.
“The business sector posted nearly a 100 percent loss rate when Hyundai exited the consortium in 2016. It is natural for a firm to downsize or shut down an unprofitable sector.”
A Samsung Fire & Marine Insurance official agrees.
“The business isn't very lucrative,” the official told The Korea Times.
“However, it is a government-designating business. Samsung Fire & Marine Insurance has a responsibility in the business for the greater good.”