MyBrown, South Korea’s first insurer focused exclusively on pet insurance, will officially launch next month after receiving final approval from the Financial Services Commission (FSC), industry sources confirmed on Sunday.
This marks the first full license granted under the small-amount, short-term insurance system introduced in 2021, which allows companies with at least 2 billion won (\$1.5 million) in capital to offer specialized insurance products for everyday needs. This development is seen as a potential turning point for the insurance sector.
MyBrown received its business license from the FSC last Wednesday, enabling it to operate as a small-amount, short-term insurer specializing in pet insurance.
Founded in March 2023, MyBrown received preliminary approval in September and has spent the past nine months meeting all necessary requirements, including securing capital, staffing, and developing operational systems.
The company’s mission is to improve the quality of veterinary care and reduce financial stress for pet owners. MyBrown differentiates itself by focusing solely on pet insurance, unlike traditional insurers that typically offer it as a secondary product.
With an initial capital of 13.2 billion won, MyBrown has garnered backing from major investors such as Samsung Life Insurance, Samsung Fire & Marine Insurance, Green Cross Veterinary Products, and Woorien. Their involvement signals strong confidence in the growing pet insurance market in South Korea.
“We are proud to be the first dedicated pet insurance provider in the country. Our goal is to improve access to veterinary care and reduce the financial burden on pet owners, marking a significant milestone for the industry,” said a MyBrown official.
The pet insurance market in South Korea has grown rapidly, with 162,111 policies in force at the end of last year, a 23-fold increase since 2018. However, the insurance penetration rate remains low, covering only 2.1% of the estimated 7.76 million pets. This is largely due to a lack of standardized systems for policy registration, claims processing, and medical data collection.
Industry experts noted that differences in veterinary treatments, terminology, and costs have hindered product development and claims management. However, there is hope for regulatory reform, especially with the new administration under President Lee Jae-myung, who has prioritized easing pet care expenses. His proposal to introduce a standardized fee system for animal treatments is among his top 10 policy goals.
“Without system changes, the growth of the pet insurance market will be limited,” said an official from the non-life insurance industry. “For success, pet insurers must offer specialized services and develop unique risk coverage products.”
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