Korean Re Signed a Coinsurance Agreement with Samsung Life
Korean Re entered into a coinsurance agreement with Samsung Life with respect to the life insurer’s liabilities worth KRW 500 billion on October 28, 2022. The agreement came after the two parties discussed and analyzed the merits and effects of the deal for about a year. By signing the deal, which went into force on November 1, 2022, we demonstrated what we can do as a reinsurer that provides various solutions beyond traditional reinsurance arrangements in response to the needs of the cedant.
Coinsurance is a type of financial reinsurance used commonly in the United States and Europe. As opposed to traditional reinsurance where insurance risks involving large man-made and natural catastrophe losses are reinsured, coinsurance allows primary insurers to cede interest rate risk as well as insurance risk, helping to reduce their capital requirements and improve their financial solvency.
Over the last four years, Korean Re has been setting the stage for developing the domestic coinsurance market. Our dedicated team of experts has strived to explore and expand coinsurance business opportunities in Korea in ways that provide domestic life insurers with more reinsurance solutions in addition to traditional reinsurance arrangements where only risk premiums would be ceded.
The recent agreement with Samsung Life marks Korean Re’s second coinsurance business following the deal with Shinhan Life in January 2022, which goes to prove how much competitive edge we have in the domestic market over other global reinsurers. We will build on our latest success to give new growth momentum to our domestic business and lead the development of the coinsurance market in general.