Korean Re Getting Closer to Opening Shanghai Branch
Korean Re obtained preliminary approval for its Shanghai branch from the China Banking and Insurance Regulatory Commission on October 10, 2018. This marked a significant progress in setting up our first branch office in China. Korean Re is now required to complete the preparatory work to establish the branch within one year from the date of pre-approval in order to get the green light to do business in China.
China is the second largest insurance market in the world after the United States, generating USD 540 billion in premium income for 2017, or 11.1 percent of the total global premiums. The Chinese market grew by 16.2 percent in 2017, and its growth potential is enormous considering it currently has a relatively low insurance penetration of 4.6 percent. Through the establishment of the branch, we aim to build a strong presence in China, which accounts for 19 percent of our overseas business. In 2017, Korean Re wrote KRW 314.2 billion in grow premiums from China.