Insurance companies in South Korea are accelerating efforts to speed up digitalisation of their operations as Internet giant Kakao Corp pushes to establish the nation’s third digital general insurer.
The digitalisation drive is also to deal with customer requirements in the COVID-19 era, reported Korea Bizwire.
Hanwha General Insurance introduced the industry’s first digital system that allows its customers to settle their claims and receive payments on a non-face-to-face basis without having to meet the company’s claims-handling staff.
NongHyup Life Insurance and Prudential Life Insurance also released their own non-face-to-face insurance products and services.
This mood is well reflected in the New Year speeches delivered by the CEOs of most general insurance companies, who put a top priority on digitalisation.
Kakao Bank, South Korea’s second Internet-only bank controlled by Kakao Corp, achieved rapid growth on the back of the dominant messaging app KakaoTalk. Kakao Pay, a mobile payment service integrated with KakaoTalk, is expected to enter the car insurance business after building up accessibility through initial concentration on short-term and small-amount insurance products. Thus, the non-life insurance sector expects Kakao’s digital general insurance company to have a strong impact.