Kakao Pay Applies for Digital Non-Life Insurance Company License... "Aiming to Launch Early Next Year"

Submission of Review Documents to Authorities on the 1st

[Asia Economy Reporter Sung Kiho] Kakao Pay has submitted an application for a digital non-life insurance company’s final license to financial authorities. If approved, it will become the third digital non-life insurer in the industry, following Carrot Non-Life Insurance and Hana Non-Life Insurance.

According to industry sources on the 2nd, Kakao Pay submitted the review documents for the final license of a digital non-life insurer to the Financial Services Commission on the 1st.

Originally, Kakao Pay planned to obtain the final license within this year and launch the service by the end of the year. However, due to delays in the review process, the goal was changed to launching in early next year. Previously, Carrot Non-Life Insurance applied for the final license at the end of July 2019 and received approval in early October.

If Kakao Pay obtains the preliminary license, it will be the first case of a new business operator, not an existing insurer, receiving a preliminary license for a telemarketing-specialized insurance company (digital insurer).

Once Kakao Pay Insurance receives the final license, it will be able to handle all insurance products currently offered by existing non-life insurers, such as accident, illness, and automobile insurance. However, as a licensed digital insurer, at least 90% of the total insurance contracts and premiums must be solicited through communication channels such as telephone, mail, or online.

A Kakao Pay representative stated, “On the 1st, we submitted the application for the final license to launch the digital non-life insurance company, and we are accelerating efforts to introduce products early next year. We will create new trends and innovations in tech-insurance-based insurance that protects users from everyday risks.”