Kakao, a South Korean firm operating the KakaoTalk mobile messaging app, is planning to expand its insurance services, a move that is likely to boost the Korean online insurance market.
The company is currently in talks with several insurers to provide their products through the Kakao Pay platform, BusinessKorea reported. Several major insurers, such as Samsung Fire & Marine Insurance and AXA General Insurance, are already marketing their insurance products via the platform.
KakaoTalk is one of the most popular instant messaging apps in the country. While selling insurance of the platform comes with a fee, insurers are open to using it due to its wide market reach, the report said. Online non-life insurance sales accounted for only 4% of the segment’s total sales, but insurers are confident that its proportion will rise, due to the youth’s changing preferences.
The mobile messaging operator is among several of its peers that have expanded into insurance and other financial services, such as mobile payments. Chinese internet giant Tencent has been offering insurance through WeChat for several years, while Tokyo-based Line Corporation established its own financial services and cryptocurrency division last year.