The General Insurance Association of Korea (GIAK) announced on Dec. 9 that it has signed a business agreement with the General Insurance Association of Indonesia (AAUI) to strengthen exchanges and cooperation.
The two associations agreed to go beyond existing exchanges to strengthen support for members’ overseas expansion and to prepare and implement exchange projects and cooperation tasks for the mutual growth of the non-life insurance industries in both countries.
In the future, the two associations will cooperate on supporting the expansion of exchanges between member companies, strengthening knowledge sharing and joint research on the non-life insurance industry and risk management in both countries, and expanding people-to-people exchanges.
In particular, Indonesian non-life insurers are interested in climate risk management in Korea, so the two associations plan to share knowledge on the Korean insurance industry and expand private exchanges between the two countries.
In 2012, the two associations signed an MOU in Jakarta, Indonesia, to foster business cooperation and information sharing.
Since then, they have continued to cooperate in response to Korean non-life insurers making a foray into Indonesia.
At the moment, six Korean non-life insurers are doing business in Indonesia - Samsung Fire and Marine, DB Insurance, Merits Fire, KB Insurance, Hanwha Insurance and Seoul Guarantee Insurance.
Indonesia is considered a promising market with the world’s fourth-largest population, stable economic growth and a push for mandatory auto insurance among others.
“Indonesia’s non-life insurance market has high growth potential,” said Lee Byung-rhae, chairman of the GIAK.
“We look forward to strengthening cooperation between the two associations for future development, contributing to boosting the global competitiveness of the Korean insurance industry and expanding the base for Korean non-life insurers to capitalize on market opportunities in Indonesia.”
Since its establishment in 1946, the GIAK has worked diligently to promote the sound growth and development of the Korean general insurance industry and to ensure industry practices that benefit Korean policyholders.
Hiring Specialized Counselors for Long-Term and Auto Insurance
The GIAK announced on Nov. 22 that it was hiring specialized counselors for its Compliance Team.
The positions are for long-term insurance and automobile insurance. Candidates must have at least five years of experience in each field.
There are no age or major restrictions. Those with an insurance adjuster license are preferred.
The positions are contract positions. The contract period will run for two years at the longest.
The GIAK will announce the final successful candidates after document screening and interview processes.
They will start working at the GIAK the organization in early January next year.
Exclusive Use Rights to Insurance Policies
Competition for exclusive use rights among non-life insurers is heating up in Korea.
In fact, the saturated non-life insurance market of Korea has been fueling the importance of exclusive use rights, which are often referred to as patent rights of the insurance industry.
As the financial authorities have decided to extend the period of authorization, the competition is expected to continue for the foreseeable future.
According to the GIAK on Nov. 28, the total number of exclusive license applications from life and non-life insurers has reached 26 in Korea so far this year.
The exclusive use right system was introduced in December 2000.
It is a system in which the New Product Review Committees of the Korea Life Insurance Association and the GIAK grants insurers who develop unique insurance products the right to sell them exclusively.
The exclusive license gives insurers who develop unique products an advantage in the market by guaranteeing them exclusive use rights.
As of April 2016, the validity period of the exclusive license has been extended to 12 months from the previous maximum of 6 months.
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