[Asia Economy Reporter Jin-ho Kim] The Coupang Deokpyeong Logistics Center in Icheon, Gyeonggi Province, which suffered significant losses due to a fire that lasted more than two days, is reported to have been insured under a comprehensive property insurance policy worth 400 billion KRW. Coupang is expected to receive approximately 360 billion KRW in insurance payouts, excluding 10% of the loss amount (insured amount).
According to financial sources on the 20th, the insurance contract for the Coupang logistics center was jointly underwritten by four non-life insurance companies: DB Insurance, KB Insurance, Lotte Insurance, and Heungkuk Fire & Marine Insurance. The insured amounts under the comprehensive property insurance are 136.9 billion KRW for buildings, 70.5 billion KRW for facilities, and 194.7 billion KRW for inventory assets.
If the damage investigation confirms that the buildings, facilities, and inventory assets were all completely destroyed by fire, Coupang will receive approximately 360 billion KRW in insurance payouts, excluding 10% of the loss amount (insured amount).
According to the insurance contract, DB Insurance holds the largest liability share at 60%. KB Insurance follows with 23%, Lotte Insurance with 15%, and Heungkuk Fire & Marine Insurance with 2%. The four insurers have partially transferred their insurance contract liabilities with Coupang to the reinsurer Korean Re through reinsurance agreements. Additionally, each company has individually entered into reinsurance contracts for their remaining insurance liabilities.
Accordingly, the insurers and reinsurers who underwrote the insurance contract are expected to bear insurance payout burdens amounting to hundreds of billions of KRW per company.
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