Asia:Sompo plans to be big in region's insurance retail market

Japanese general insurer Sompo Holdings has embarked on a major push into Southeast Asia's giant retail market. "Asia is all about people," said Mr Daniel Neo, CEO of Sompo Holdings (Asia), referring to the vast population in the region. "We want to become part of people's life all over Asia... We really have to bring the Sompo brand into the minds of all the consumers in Asia."

Sompo's focus on the retail business in Asia contrasts with those of its Japanese peers -- Tokio Marine Holdings and  MS&AD -- which are focused on commercial businesses such as insurance for factories, buildings and marine cargo, reported Nikkei Asian Review. Sompo's foray comes also as Western insurers exit Asia in droves, creating an opening for Japanese financial services.

Raising its brand recognition will be key if Sompo were to succeed in the retail market dominated by local players. Sompo's Asia business is currently 70% commercial and 30% retail. In 10 years, the company wants to reverse the ratio. Sompo is also looking to partner with major online platforms, such as Grab of Singapore and Gojek of Indonesia.

"I see them not as competitors but as partners," Mr Neo said, noting that such platforms have neither insurance licences nor large balance sheets to support financial services operations. "We have to find a way to use them as part of our ecosystem to distribute our products to our customers," he said.

Sompo already has such a partnership in Indonesia with online retail platform Bukalapak. It sold 3m shipping insurance policies in just three months, acquiring 1m new customers.

Source: Asia Insurance Review