General insurance association signs MOU with Indonesian counterpart

The General Insurance Association of Korea Chairman and CEO Lee Byung-rhae, left, poses with the Indonesian General Insurance Association Chairman Budi Herawan after signing a memorandum of understanding at the Korean association's headquarters in Seoul, Monday. Courtesy of the General Insurance Association of Korea

The General Insurance Association of Korea signed a memorandum of understanding (MOU) with the Indonesian General Insurance Association to strengthen bilateral exchanges and cooperation, the Korean association said Tuesday.

The agreement follows a previous one signed in 2012 to promote cooperation in areas such as business collaboration and information sharing. They have continued their cooperative efforts, driven by the growing interest of Korean insurers in entering the Indonesian market.

The new agreement signed in Seoul on Monday seeks to go beyond the existing exchanges, developing initiatives and collaborative projects to support the advancement of their members into overseas markets and to promote mutual growth of the insurance industry in both countries.

In particular, the two associations agreed on expanding exchanges between member companies, enhancing knowledge sharing and joint research on the insurance industry and risk management.

As Indonesian general insurance companies are highly interested in Korea’s climate risk management, the associations plan to expand private-sector exchanges by sharing related knowledge and providing training.

“The MOU will strengthen collaboration for future development, contributing to the global competitiveness of the domestic insurance industry,” the General Insurance Association of Korea Chairman and CEO Lee Byung-rhae said.

“I hope this will expand the opportunities for Korean general insurance companies in the Indonesian market, which has high growth potential and can contribute to the development of insurance industries in both countries.”

Six domestic general insurance companies — Meritz, Hanwha, Samsung, KB, DB and Seoul Guarantee Insurance — have entered the Indonesian market, which is considered a promising market due to its huge population, stable economic growth and the push for mandatory automobile insurance.