SEOUL: According to industry sources, a lot of foreign reinsurance companies such as Asia Capital Reinsurance Group and Pacific Life Re are planning to start their business in Korea this year. They are expected to take the market share of Korean Re in the long term with peers like Munich Re, Swiss Re and Hannover Re, which are already in business in Korea.
In addition, foreign non-life insurance companies such as AIG General Insurance are beefing up their reinsurance divisions in the Korean market in order to turn their eyes from the saturated general insurance market.
Likewise, leading Korean non-life insurers such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance and Dongbu Insurance are striving to create new demands in the reinsurance market. Those that have commercial insurance networks, including KB Insurance, are concentrating on the same market as well.
Under the circumstances, experts predict that Korean Re’ predominance in the domestic reinsurance market will not continue any longer and competition in the market will become more and more intense from this year. At present, Korean Re has a market share of approximately 60%.
In response, Korean Re is planning to diversify its income sources by expanding its business abroad. Specifically, it is trying to set foot in Britain, China, Dubai and so on. “Overseas sales currently account for about 20% of our total sales but we are going to gradually increase the ratio from this year,” Korean Re explained.
