Kakao gets regulator nod for digital insurance business

This marks the first time a newcomer has been allowed to launch.

South Korea’s Financial Supervisory Commission has approved a digital insurance business by online messenger and tech giant Kakao.

According to the FSC, Kakao managed to satisfy all criteria, including the amount of capital stock, for the launch of its non-life insurance business.

Kakao’s insurance venture will be 40% owned by Kakao and 60% owned by its online payment unit Kakao Pay. Both will be contributing to the initial capital of $81m for its launch.

The approval of Kakao’s insurance venture marks the first time a newcomer in South Korea’s insurance industry has been allowed to launch a digital insurance firm.

Kakao is expected to launch its insurance business in the third quarter this year.

This marked the first time a newcomer in the industry has been allowed to launch a digital insurance firm. Previously, Kyobo Life Insurance's Kyobo Lifeplanet Life Insurance and Carrot General Insurance run by Hanwha General Insurance received the green light for digital operations.

Kakao is expected to launch the insurance business in the third quarter of this year.

You may also like:

Tokio Marine’s GCube expands footprint in Australia

OneDegree announces three-year partnership with Munich Re

Singlife appoints Matter to review its sustainability portfolio