Kakao cleared to prepare and launch digital non-life insurance business this year
Kakao Pay, under the leadership of South Korea’s dominant chat platform operator, Kakao Corp.
The Financial Services Commission said on Thursday it had given Kakao preliminary approval for its insurance business plan after judging it met capital, business proposal and healthcare management requirements.
Kakao’s digital non-life insurer – 60% invested by Kakao Pay and 40% by Kakao – goes into operation with an initial capital of 100 billion won ($ 89.6 million).
The FSC said it believes the digital non-life insurer will be able to contribute to innovation and competition in the insurance industry and improve consumer convenience through its service of Kakao Group digital technology and platform insurance.
According to its business plan, the digital insurer will provide platform-based self-designed insurance products.
It will create niche insurance products for social clubs, cell phone damage, children, and the safety of taxis and e-bikes linked to Kakao Mobility.
The new digital non-life insurer would boast of the simplicity of underwriting through Kakao Talk and Kakao Pay and a rapid review of claims based on artificial intelligence technology.
Final approval will be granted after Kakao’s non-life insurance unit submits the application after raising investment capital, hiring employees and establishing facilities within six months.
Kakao would become the first pure-play entity to obtain a digital insurance license. Other services come from the traditional insurer – Kyobo Lifeplanet Life Insurance from Kyobo Life Insurance and Carrot General Insurance from Hanwha General Insurance.
By Lee Eun-joo
[â Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]