South Korean Insurers Explore Entry Into India’s $130 Billion Market

Samsung Fire & Marine Insurance, Mirae Asset Financial Group and Hyundai Marine & Fire Insurance are studying a possible entry into India’s $130 billion insurance market, according to a Reuters report. The interest comes after India allowed full foreign ownership in the insurance sector, a move that has drawn attention from overseas financial groups. 

As per report, representatives from the 3 firms have met Indian insurers, advisers and the Insurance Regulatory and Development Authority of India (IRDAI) in recent months. The meetings were aimed at understanding possible routes into the market. The talks remain exploratory and no formal proposals have been filed. 

Focus on Different Business Lines 

Samsung Fire & Marine and Hyundai Marine & Fire are examining the non-life segment. This includes motor, health, property, and liability cover. Hyundai, South Korea’s second-largest non-life insurer, said it is not planning an immediate move and is reviewing options over the medium to long term. 

Mirae Asset Financial Group is looking at the life insurance segment. The group already runs a mutual fund business in India. In South Korea, it offers life cover, retirement products and variable annuities. 

Market Size and Operating Challenges 

India has around 60 insurers, with foreign companies such as Prudential, Sun Life and AIG operating through joint ventures. Insurance penetration was about 3.7% of GDP in 2024, lower than global averages. 

Industry reports point to higher commission costs than in many other markets. Profit margins are also below those seen at several multinational insurers across Asia. 

Regulatory Backdrop 

Insurers are preparing for proposed reforms that would give the IRDAI powers to set commission limits and order recovery of wrongful gains. Sources said both partnership and direct entry routes are being examined. 

Read More: Bombay HC Ruling: Premium Taken Means Claims Must Be Honoured! 

Conclusion 

South Korean companies have expanded their presence in India across sectors such as automobiles and electronics. In 2024, Hyundai Motor and LG Electronics listed their Indian units on domestic exchanges. Any insurance deal would mark the first entry of Korean insurers into India’s insurance sector. 

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