ERGO, Europe’s 12th-largest insurance company entered the Korean market in 2008 by buying a 65 percent stake in Daum Direct Auto Insurance Co., an online auto insurance unit of Daum Communications Corp.
The company’s direct auto insurance unit in Korea, ERGO Daum Direct Auto Insurance Co., received regulatory approval in September 2009 to sell six different non-life insurance products including health, liability, fire and theft insurance. In June, the company introduced two new products, offering coverage for drivers and children. The German insurer then renamed the local unit ERGO Daum Direct General Insurance Co.
“The importance of the Korean market comes from its market potential,” Oletzky said. “It is one of the best-developed countries among those we are interested in – such as Malaysia, Thailand and Vietnam – and it’s a good chance for us to learn how to do business in Asian countries.”
ERGO will provide fire insurance for home owners and liability insurance products in October and is considering the introduction of a travellers insurance policy.
Despite fears about the global recovery, “I do believe that the prospects for the insurance industry, especially for the general insurance industry, are quite good,” Oletzky said.
Source : Joongang Daily
