Allianz Global Corporate & Specialty (AGCS) has shown a strong start to its operations in South Korea is on track with its target of attaining EUR100 million ($118 million) within five years of opening.
In 2017, AGCS’s total premium income for South Korean business totaled more than EUR40 million, equivalent to about 10% of overall AGCS Asia business, the company says in a statement.
Last June, AGCS became the first foreign non-life insurer in almost a decade to receive regulatory approval from the Financial Services Commission (FSC) to open a branch in Seoul.
As Allianz Group’s dedicated company for corporate and specialty insurance business, AGCS has successfully expanded its product offering to serve clients in the country. AGCS insures a wide range of businesses and customers with special risks such as aviation, shipping or cyber exposures worldwide.
“We have been active in this thriving market for several years. Since opening the local office in June last year, we have been able to serve both local South Korean and global companies with South Korean interests much more efficiently,” said Mr Chang Tae Noh, CEO of AGCS South Korea Branch.
In particular, AGCS sees significant opportunities for growth in the corporate and specialty insurance segment in South Korea. The country’s rising number of large infrastructure projects in railways, ports and subway lines, and a focus on environmental liability require tailored insurance solutions for relatively large risk exposures. In addition, the South Korean economy receives strong contributions from the automotive electronics and high-tech communication industries, all of which complements AGCS’s areas of specialist expertise.
The AGCS South Korea branch will continue to focus on serving companies with multinational operations extending beyond the country, leveraging on AGCS’s technical expertise and experience in running international insurance programmes. Global insurance programmes provide a central oversight with local coverage that is harmonised for all locations in which a company operates. In 2017, AGCS led 2,500 such programmes with approximately 19,000 local policies globally. It will offer a variety of product lines, including Engineering, Financial Lines, Property, Marine, MidCorp and Liability.
“We have seen an increase in demand for global insurance programmes as more South Korean firms look to expand overseas as well as from the growing pool of global corporations with South Korean interests. AGCS is one of the very few global insurers to focus exclusively on the needs of global corporate and specialty clients,” said Mr Noh. Already, more than 11% of AGCS's global clients have operations in South Korea protected under its international insurance programmes.
Besides traditional property and liability concerns, new emerging risks such as product recall, environmental liability, terrorism, and D&O have gained more attention from clients.
Product recalls are on the rise in Asia reflecting the eastwards shift in global supply chains and historically weaker controls in some countries. Three of the largest multi-billion dollar incidents of recent times involve manufacturers from Japan and South Korea, resulting in liability-based products seeing strong demand from clients in these markets as well as across Asia.
AGCS is the Allianz Group's dedicated carrier for corporate and specialty insurance business AGCS provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business: Marine, Aviation (incl. Space), Energy, Engineering, Entertainment, Financial Lines (incl. D&O), Liability, Mid-Corporate and Property insurance (incl. International Insurance Programmes).