AXA has been concentrating on car insurances since its launch in Korea in 2001. About 88 percent of 396.3 billion won in sales as of June was from car insurances. It was the first to introduce direct insurance programs in the Korean market.

Due to high loss ratios of around 78 percent, automobile insurance is considered a money-losing business in the insurance sector. However, despite this insurers face difficulties raising premiums due to fierce price competition. Local general insurance firms offset their losses from car insurances with other general insurances.

“It is quite a strong drive to boost the Korean business,” said the PR officer. “Since we have been doing the direct insurance as the first in the market, we do have great know-how and will keep it up both in the car and general accident insurance.” 

Including Korea, AXA Group is planning to boost its investments across the Asian region, judging the Asian insurance market has high growth potential, the officer added. 

“Since customers here are very digital friendly, we do have a competitive edge,” she said. “We will try to bring in good general insurance products from our group.” 

Additional investments can also be made to expand sales and marketing activities, the company added. 

By Song Su-hyun (song@heraldcorp.com)