December 22, 2024

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General Insurance Association of Korea Chairman Lee Byung-rhae speaks during a meeting held in Seoul on Nov. 26. (Newsis)

The general insurance industries of South Korea and Indonesia are deepening their partnership.

The General Insurance Association of Korea announced on Monday that it recently signed a memorandum of understanding with the General Insurance Association of Indonesia to strengthen exchanges and collaboration.

The agreement outlines plans to support member companies' overseas expansion and collaborate on initiatives aimed at mutual growth in both countries' insurance sectors. The associations will focus on promoting member exchanges and joint research, as well as strengthening knowledge sharing, risk management and talent development.

The Korean association highlighted the Indonesian insurance companies' growing interest in South Korea's climate risk management practices, and added the two organizations plan to share expertise while expanding private-sector exchanges between their countries.

Since their first MOU in 2012, the two associations have enhanced their cooperation, with South Korean insurers increasingly eyeing opportunities in Indonesia. With the world’s fourth-largest population and a stable, growing economy, as well as plans for mandatory vehicle insurance, Indonesia is seen as a key emerging insurance market.

Currently, six South Korean general insurers, including subsidiaries of Samsung Group, DB Group, Meritz Financial Group, KB Financial Group and Hanwha Group, are operating in Indonesia.

Lee Byung-rhae, chairman of the General Insurance Association of Korea, said, “We hope that strengthening cooperation between the two associations will boost Korea’s global competitiveness in insurance and open new opportunities for Korean insurers in Indonesia’s growing market, contributing to the advancement of both countries' insurance industries."

By Choi Ji-won (jwc@heraldcorp.com)