Kakao, Samsung Fire & Marine ditch plan to form joint digital insurer
2020.05.27 13:45:08 2020.05.27 14:50:28
이미지 확대The two companies on Tuesday informed the Financial Services Commission (FSC) they have cancelled plans to form a joint online insurance company. The two entered into an alliance last September and have been readying to file a preliminary application with the FSC.
Under the initial agreement, Kakao Pay, Kakao’s online payment service unit, was to hold the management rights, with Kakao and Samsung Fire & Marine as strategic investors. Kakao Pay was to own 50 percent of the joint venture. Kakao would have 30 percent and Samsung Fire & Marine 20 percent.
The companies appear to have parted on friendly terms, signing an agreement to a general partnership on Monday.
Kakao, operator of Korea’s largest messenger platform, has been trying to add insurance to its rapidly expanding fintech portfolio. Kakao Pay is reportedly seeking to set up a digital insurer on its own rather than searching for another partner. Insiders say it is aiming to finish preparations by the end of this year.
The collaboration fell apart largely due to a conflict over the launch of digital car insurance, according to sources.
Samsung Fire & Marine reportedly wanted to delay the offering, fearing cannibalization with its own online auto insurance service. It was also wary of the grim business prospects given the reduced auto use amid the pandemic.
Kakao, however, saw the auto insurance plan as a key marketing point for the new insurer. One big influence appears to have been Carrot General Insurance, which grabbed attention in March with its new pay-per-mile auto insurance plan. Kakao has been closely following Carrot as it is Korea’s first online-only insurance company, launched by Hanwha General Insurance Co., SK Telecom Co. and Hyundai Motor Co. last October.
By Lee Seung-hoon and Kim Hyo-jin
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]
