Samsung, Kakao join hands for insurance biz

Samsung Fire & Marine Insurance headquarters in Seoul / Korea Times file

By Park Jae-hyuk

Samsung Fire & Marine Insurance and KakaoPay have formed a partnership to establish an internet-only non-life insurance firm, the companies said Wednesday.

An internet-only non-life insurer is an insurance company that is allowed to sell insurance via computers or mobile devices only.

The two companies said they plan to apply for preliminary approval from the Financial Services Commission by the end of 2019.

“We have been preparing for establishing a digital non-life insurer jointly with Samsung Fire,” a KakaoPay official in a statement. “We are at an early stage, so we have yet to draw up a list of specific products that we want to sell.”

Samsung Fire also said it formed a taskforce with KakaoPay to establish an online insurer.

Although Samsung Fire said its stake in the insurance firm has not been decided yet, KakaoPay is expected to be the largest shareholder with the controlling stake, while Samsung Fire will serve as a strategic investor.

KakaoPay CEO Ryu Young-joon / Korea Times file

Their new insurance company will likely specialize in insurance for pets, travelers and shared vehicle users, aiming to provide insurance for everyday life.

Carrot General Insurance, the nation's first internet-only non-life insurer which got approval from the financial authorities in October, is also targeting consumers who want insurance for daily life.

Hanwha General Insurance, SK Telecom and Hyundai Motor formed a consortium to launch the online insurer, and it will open for business in 2020.