NewsPress Release
June 11, 2003
Daum to establish online auto insurance corporation
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Daum Communications(www.daum.net) announced that it planed to establish an online auto insurance corporation (Daum Direct Line Co, tentative name) for a direct transaction through telemarketing and online sales.
Daum will establish a new corporation, which holds 1bn of paid-in capital to apply for a preliminary authorization of Financial Supervisory Service in June 2003 and after its authorization, will begin its business in 4Q 2003. Daum will invest 90.1% of total shares of the newly established corporation and LG will invest 9.9%. The new corporation will use Daum as a major marketing platform and outsource off-line warranty services from LG Insurance Co., Ltd.
Online Market has advantages: (1) no time limit with transactions on web, (2) no wasting time since customers are able to use 1:1 communication directly according to their needs (3) discounted insurance premium due to reduced cost from simplified distribution channels.
Online transactions take about 50% of auto insurance market in European market and takes about 30% in the US market. Since an online auto insurance market is just at the beginning stage, occupying only about 2.5% of a total auto insurance market, and online infrastructures are well-developed, the market is expected to grow rapidly in future.
Daum will establish a new corporation, which holds 1bn of paid-in capital to apply for a preliminary authorization of Financial Supervisory Service in June 2003 and after its authorization, will begin its business in 4Q 2003. Daum will invest 90.1% of total shares of the newly established corporation and LG will invest 9.9%. The new corporation will use Daum as a major marketing platform and outsource off-line warranty services from LG Insurance Co., Ltd.
Online Market has advantages: (1) no time limit with transactions on web, (2) no wasting time since customers are able to use 1:1 communication directly according to their needs (3) discounted insurance premium due to reduced cost from simplified distribution channels.
Online transactions take about 50% of auto insurance market in European market and takes about 30% in the US market. Since an online auto insurance market is just at the beginning stage, occupying only about 2.5% of a total auto insurance market, and online infrastructures are well-developed, the market is expected to grow rapidly in future.
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