Korean Re obtained a reinsurance intermediary license in New Jersey
Korean Re has obtained a reinsurance intermediary license for KoreanRe Insurance Services, Inc. from the Department of Banking & Insurance in the State of New Jersey, the United States. The reinsurance intermediary will help Korean Re build stronger brand recognition in the U.S. by serving the interests of insurance companies in the country and securing more flexible and creative reinsurance solutions.
Currently, Korean Re has a liaison office in New York, but it is not allowed to conduct actual business transactions. As a reinsurance intermediary, KoreanRe Insurance Services, Inc. can actively develop new business opportunities with a relatively smaller amount of capital than a branch or subsidiary.
Since Korean Re announced its plan on a reinsurance intermediary in the U.S. in September 2020, it has made swift progress in setting up the business. In February 2021, Korean Re successfully established a registered business in New Jersey, followed by the license approval in September. KoreanRe Insurance Services, Inc. is expected to start operations by the end of this year.
The establishment of the new business in the U.S. is part of Korean Re’s global expansion strategy. Since CEO Won took office in June 2013, he pushed ahead with an overseas business expansion drive, leading Korean Re to broaden its global business network. Over the past eight years, Korean Re built six new presences, i.e. Korean Re Underwriting Ltd. at Lloyd’s of London in the U.K., the Labuan branch in Malaysia, the Dubai DIFC branch in the UAE, Korean Reinsurance Switzerland AG in Zurich, Switzerland, the Shanghai branch in China, and a representative office in Bogotá, Colombia.
The new reinsurance intermediary, which represents another important milestone in our efforts to expand into global markets, will first target to attract quality business in the northeastern part of the U.S. and then gradually tap into other parts of the country. Backed by the activities of the reinsurance intermediary, we will continue to raise our business profile and drive our business growth in the U.S., which has a global market share of 40% in terms of premium income.