By Kang Seung-woo
ERGO Insurance Group plans to earn recognition as a general insurer in Korea with a variety of non-life insurance products.
“As signified by its advancement into the Korean market along with the Indian market, ERGO Group recognizes the value of the market,” Torsten Oletzky, chairman of ERGO Insurance Group, told reporters in a press conference in Seoul, Tuesday.
“From now on, diverse products of ERGO Group shall be introduced to the market by taking a chance on ERGO Daum Direct’s transformation into a general insurance company.”
The German insurer, Munich Re’s primary insurance subsidiary, made its foray into the Korean insurance market in 2008 after purchasing a 65 percent stake in Daum Direct Auto Insurance, an online auto insurance unit of Daum Communications.
ERGO Daum Direct Auto Insurance received regulatory approval in September 2009 to sell six different non-life insurance products and it changed its name to ERGO Daum Direct General Insurance in June.
As part of becoming a comprehensive insurer, ERGO, which started offering insurance for drivers and children two months ago, plans to come up with fire insurance for home owners and liability insurance products in October, according to the company.
In addition, it is undergoing market analysis to launch overseas travelers insurance.
“We do see some synergy and this type of travel-related product fits very well with direct sales,” he said.
The 43-year-old chief said that the Korean market will be a stepping stone for the group’s Asia expansion, introducing ERGO knowhow in direct sales and product development to its Korean arm to play a role in spring-boarding into the Asian market.
“Korea is one of the best developed countries with a population of almost 50 million people. We believe that this is a very good place to start doing business and very helpful to us to learn how to do business in Asian countries,” he said.
“Our preference will be to grow steadily and profitably rather than taking things too fast.”
ERGO Insurance Group, which is operating in more than 30 countries around the world with its total premium income of 19 billion euros ($24 billion), has a foothold in the Korean and Indian non-life insurance markets as of now in Asia, and plans to go into markets such as Malaysia, Thailand, Indonesia and Vietnam.
ksw@koreatimes.co.kr