Japan firm eyes expansion into Indonesia and Vietnam markets
NATSUMI IWATA | Nikkei | September 6, 2024
TOKYO — Japan’s Mitsui Sumitomo Insurance will begin marketing health insurance products in Singapore from October through an investment in local insurance company Serenity Health Partners, with plans to expand into Indonesia and Vietnam from next year on.
The size of the stake and amount paid have not been disclosed.
Interest in full health insurance coverage is growing in Southeast Asia. Singapore is home to a cluster of fintech and other startups. Mitsui Sumitomo Insurance sees demand for health insurance products as those companies expand benefits to employees,
The insurance it will sell in Singapore through Serenity targets the relatively affluent and middle classes.
Mitsui Sumitomo Insurance aims to earn 13 billion yen ($90 million) in premiums in Singapore over the next five years to seven years. It is also considering creating a health care business that utilizes data such as medical insurance payments.
Expanding the health care business is part of a long-term growth strategy for Mitsui Sumitomo Insurance’s Asian operations. Until now, it has provided medical insurance to Japanese companies with operations overseas to cover illness and injury.
Pending approval by local authorities, Serenity plans to become Mitsui Sumitomo Insurance’s managed general agent (MGA). MGAs are authorized by insurance companies to handle operations like insurance sales, contract management, product design and claims assessment. In the U.S. and other countries, MGAs are a common insurance sales channel.