South Korea-based Hana Financial banking group has decided to launch a new digital insurance unit in June 2020, The Investor reported.
The digital insurance unit will be branded as Hana General Insurance, which was formerly an auto insurance firm.
The new unit will be introduced through its newly-acquired subsidiary named The-K NON-Life Insurance, the report added.
Hana Financial bought a 70% stake in The-K Non-Life Insurance from the Korea Teachers’ Credit Union in a KRW77bn ($62.7m) deal.
Founded in 2003, The-K Non-Life Insurance offers long-term, non-life insurance products.
Hana General Insurance is expected to mainly focus on bancassurance and cardsurance businesses through the group’s bank and credit card units respectively.
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This will enable the group to sell their insurance products to a wide range of customers through its digital platform.
Moreover, the company plans to launch an all-in-one mobile application which will provide both Hana General Insurance and Hana Bank services.
Subscribers will also have access to long-term insurance services.
At the end of last year, instant messaging app Kakao collaborated with Samsung Fire & Marine Insurance (SFMI) to launch a new digital insurance firm in South Korea.
The move marks Kakao’s foray into the insurance sector. The partners plan to launch a new internet-only non-life insurer.