American insurance major Cigna is reportedly planning to establish a digital non-life insurance unit in South Korea.
Cigna will self-fund the unit and aims to open the digital non-life insurance company in the first half of 2022, Business Korea has reported.
Cigna already offers life insurance products in the country through its subsidiary Lina Korea.
It plans to leverage its healthcare market presence to enter the digital non-life space.
Business Korea’s report says that Cigna’s non-life venture will be the first foreign firm to operate in South Korea’s non-life insurance industry.
The country’s non-life insurance industry is dominated by major insurers’ subsidiaries like Hana and Hanwha.
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Cigna entered South Korean insurance market by launching Lina Korea in 1987.
Lina Korea’s assets totalled $4.47bn (KRW5.06 trillion) and net profit was $315m (KRW357.2bn) at the end of 2020.
Earlier this week, the Asian reinsurance market saw the acquisition of Singapore Reinsurance by Fairfax Asia.
The Asian unit of the Canada-based financial group Fairfax Financial received valid acceptances amounting to 90.02% of the total issued shares last week.
In May, a Chinese insurtech start-up Yuanbao raised $155m in a Series C funding round led by Source Code Capital.
In March, Hong Kong-based insurer AIA Group agreed to acquire the life insurance arm of Bank of East Asia (BEA) in a cash deal worth HK$5.07bn (around $650m).
Under the agreement, AIA will buy 100% of BEA Life, a wholly-owned BEA subsidiary.