ERGO LOOKS AT SOUTH KOREAN EXPANSION

Germany-based Ergo, the primary arm of German reinsurer Munich Re, hopes to expand in the Korean non-life market by launching a product that covers litigation costs, Ergo CEO Torsten Oletzky said today. Speaking to reporters in Asia, Mr Orletzky said that “we have an ambition to become a meaningful player in the Asian market... We’re just about to prepare to launch this product first in the Asian market. That would be Korea”. He said that Korea had been chosen for the legal protection product because its legal system had developed in a manner very similar to those known in Europe or Germany. Mr Orletzky said that Ergo had begun discussions with the Korean lawyers’ association and that it had received a positive response. The plan is to build a sales agent network before launching the product in the middle of next year. Ergo currently owns 65% of online motor insurance operation Ergo Daum Direct Auto — the second-largest online motor insurer with a market share of 14.6%.