Hanwha Life Acquires Lippo General Insurance to Enhance Global Reach with Digital Capabilities
- Hanwha Life Indonesia completed the acquisition of a majority stake in Lippo General Insurance on March 29.
- Hanwha Life aims to expand its presence as a comprehensive digital-based financial services provider, offering customized financial solutions.
- Hanwha identifies growth potential in Indonesia's insurance market, spurred by the ongoing discussion of mandatory insurance requirements.
Hoon Namkoong, head of Hanwha Life's Indonesian subsidiary (second from the left), and Eddy Harsono Handoko, President Director of Inti Anugerah Pratama, a Lippo Group affiliate (second from the right), took a commemorative photo on March 29 in Jakarta, Indonesia, after completing a shareholder agreement to acquire shares in Lippo General Insurance.
On March 29, Hanwha Group successfully completed the acquisition of a 62.6% stake in Lippo General Insurance, a member of Indonesia's Lippo Group, the sixth-largest business group in Indonesia. Hanwha Life Indonesia took a 47.7% stake, while Hanwha General Insurance acquired 14.9%. This acquisition will reinforce Hanwha Life Indonesia's existing life insurance business and facilitate the establishment of a wide-ranging product portfolio covering both life and non-life insurance.
Lippo General Insurance holds a prominent position in the Indonesian insurance market, ranking 14th among non-life insurers and boasting the second-largest market share in health and accident insurance as of 2020. Lippo Group has multiple subsidiaries in various business areas including banking, medical care and distribution. With Lippo Group’s strong regional brand recognition and diverse business portfolio, Hanwha Life plans to expand its network to reach a wider range of customer groups.
Since 2013, Hanwha Life Indonesia has pursued sustainable growth through a strategy of operational localization, internal strengthening and scaling up to establish a strong revenue base and profitable business model. The company has focused on diversifying its portfolio to offer a wide range of products. The company’s insurance coverage includes health insurance, group protection insurance and more, with the company’s ultimate aim to become a comprehensive financial company offering a broad range of products and services for its Indonesian customer base.
Additionally, leveraging the digital capabilities that Hanwha Life has accumulated, the company plans to expand its business by collaborating with various leading platforms. As a testament to its strong digital capabilities, Hanwha Life was recognized at the Digital Innovation Awards in 2023, held in Indonesia on March 30, and was named the most innovative life insurance company for its online subscription system and digital technology development.
In line with this, Hanwha Life Indonesia plans to launch a new platform that provides insurance services through a metaverse experience to secure potential Millennial and Generation Z customers. The company is also streamlining customer registration and underwriting functions to digitalize its insurance business.
Currently, the Indonesian non-life insurance market is experiencing strong growth, with robust competition among a number of insurance providers. Despite the presence of many competitors in the market, none hold a dominant market share. As such, this suggests there is considerable room for expansion in the future as the country’s insurance market continues to develop. Hanwha Life recognizes this opportunity and is eagerly pursuing business expansion in the Indonesian market.
In addition, ongoing discussions around mandatory auto insurance present new business opportunities, particularly for Hanwha’s Carrot General Insurance (“Carrot”), South Korea's first digital non-life insurance company. Carrot offers "mileage car insurance," a personalized, usage-based coverage plan that calculates premiums based on actual driving behavior, distance driven, and safety habits, all monitored through AI, big data, and IoT devices. With its digital capabilities, Hanwha is in a strong position to capitalize on the potential of the Indonesian market and newly expand its digital non-life business. Going forward, Hanwha aims to use its digital and financial expertise to seize on current and future market opportunities.
Hanwha Group's acquisition reflects its strategic focus on expanding its influence in the financial sector. By tapping into the Indonesian market's growth potential and leveraging its digital capabilities, Hanwha Group is well-poised to drive its diverse financial offerings forward and solidify its global presence.
Hanwha Life
Established in 1946, Hanwha Life is not only a leading South Korean life insurance company but also the first and oldest in the nation. For the past 75 years, Hanwha Life has played a critical role in developing the industry and expanding the country’s economic growth. In 2021, Hanwha Life reported total assets of USD 112.76 billion, demonstrating its sound structure and firm commitment to adding innovative products and services that meet a wide range of customer needs.
For more information, visit: www.hanwhalife.com/en
Hanwha General Insurance
Established in 1946, Hanwha General Insurance is the first South Korean insurance company entirely funded by domestic capital. Through the decades, Hanwha General Insurance has played a pivotal role in developing South Korea’s general insurance industry. Today, the company is a major insurer with total assets of USD 17.65 billion (as of the end of 2021). Hanwha General Insurance provides advanced services to enhance customer value and offers a comprehensive product portfolio, ranging from long–term insurance to auto and general insurance.
For more information, visit: www.hwgeneralins.com/en
Carrot General Insurance
Carrot General Insurance is South Korea’s first fully licensed 100% digital insurance carrier. With technology ingrained into its DNA, Carrot General Insurance was founded with the vision of redefining insurance by changing the way people are protected, how they access insurance policies and information, how premiums are calculated and, ultimately, by recasting how insurance is perceived.
For more information, visit: www.carrotins.com/desktop/en/
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