Chairman Choi Jong-gu of the Financial Services Commission(FSC) (Photo: FSC)

The government will issue a license to another reinsurance firm in Korea to rejuvenate the reinsurance industry, which has been so far dominated by Korea Reinsurance Co. (Korean Re).
As a first step for the government measure to introduce competition in the reinsurance industry, the calculation of the insurance premium will no longer be done by Korean Re. It will be left up to the insurance firms. The 40-year monopoly of the reinsurance industry by Korean Re would come to an end with the government deciding to allow a new reinsurance firm to compete with Korean Re, the sole reinsurance firm in Korea since 1978 when the reinsurance firm was privatized.
Established as a state-owned company, the Korean Non-life Reinsurance Corporation began operation in 1963.
Financial Services Commission (FSC) announced its plan to allow a new reinsurance firm in the country to compete with Korean Re, which is the two-step reform and development plan for the reinsurance industry on June 3.
First of all, the FSC has decided to allow the corporate insurance firms to decide their own insurance premiums no longer let Korean Re to determine them for the insurance firms. Korean Reinsurance Company (CEO Jong-Gyu Won) received final approval from the Labuan Financial Services Authority in Malaysia on June 28, 2017 to establish and operate a new branch in the country.
By obtaining the business license in the region, Korea’s leading reinsurer has gained a foothold to actively expand into the Malaysian market that has high growth potential and a significantly lower risk of natural catastrophes compared to other Southeast Asian countries.
The new Labuan branch, which is officially up and running starting 1 July 2017, will be an unmanned operation, making use of staff and other resources of the company’s Singapore branch.
Now with this full-fledged branch in Labuan ready to operate, Korean Re will be able to strengthen its business network with a total of 9 foreign offices in major regions of the world such as London, New York, Dubai and Hong Kong, not to mention Singapore where the company set up its first overseas branch in 1978. Going forward, the company plans to keep expanding its operational base worldwide to actively tap into overseas markets.
Korean Re is a global reinsurer that provides clients with high-quality reinsurance services and risk management solutions as their reliable business partner.
“Protecting client assets is our paramount goal,” the company said.
Risks are intensifying and becoming more diverse and complex, particularly amid growing intensity and frequency of natural disasters. It is no surprise that the value of risk management through reinsurance is increasing more than ever in this highly complicated world.
“Drawing on our 55 years of expertise and experience in the reinsurance business, we make every possible effort to ensure our client assets are best protected,” according to the company. “As much importantly, we are steadfastly dedicated to promoting social values and making our community stronger and more resilient, which we believe is an integral aspect of insurance. You have our unwavering commitment that we will remain a solid supporter of our community development.”
The Korean Re Reinsurance Management Seminar is an annual event for regional and global insurers and reinsurers committed to improving cooperation and partnership among participants from the insurance community.
Since it was first launched in 1979, the Korean Re Seminar has served as a venue for information exchange and discussion on key issues of the insurance industry.
Over the past few decades, more than 500 participants from around 230 organizations have attended the seminar.

A view of the building in Seoul where Korean Re has its offices. (Photo: Korean Re)