This undated file photo provided by Kakao Pay shows its headquarters in Pangyo, south of Seoul.
SEOUL, Jan. 21 (Korea Bizwire) — The sense of crisis felt by South Korea’s general insurance companies is growing as internet giant Kakao Corp. is pushing to establish the nation’s third digital general insurance company.
Against this backdrop, existing insurance companies are accelerating efforts to speed up their digitalization.
Hanwha General Insurance Co. introduced the industry’s first digital system that allows its customers to settle their claims and receive payments on a non-face-to-face basis without having to meet the company’s claims-handling staff.
NongHyup Life Insurance Co. and Prudential Life Insurance Co. also released their own non-face-to-face insurance products and services.
The general insurance companies are accelerating such moves not only to deal with the persistent virus outbreak but also to cope with Kakao’s push for establishment of its digital general insurance company.
This mood is well reflected in the New Year speeches delivered by the CEOs of most general insurance companies, who put a top priority on digitalization.
Given that Kakao Bank, South Korea’s second internet-only bank controlled by Kakao Corp., achieved rapid growth on the back of the dominant messaging app KakaoTalk, the general insurance industry expects Kakao’s digital general insurance company to have a strong impact that is incomparable with that of other digital general insurance companies.
Kakao Pay, a mobile payment service integrated with KakaoTalk, is expected to expand its business coverage towards car insurance after building up accessibility through initial concentration on short-term and small amount insurance products.
Kevin Lee (kevinlee@koreabizwire.com)
