Shim Yong-ju, FM Global’s branch manager in South Korea, speaks during a press conference designed to mark the U.S. insurance company’s launch here held at Four Seasons Hotel Seoul on Feb. 14. Photo courtesy of FM Global

U.S. insurance giant makes inroad into local market

Mutual insurance company FM Global of the United States announced on Feb. 15 that it would wade into the South Korean market after getting a license from the latter country’s financial regulator.

To let the Korean customers know the firm’s vision and business plan, FM Global held a press conference in downtown Seoul participated by its senior officials.

Shim Yong-ju, who has worked for FM Global over the past two decades, will take charge of the new entity.

“Korea, which has a strong manufacturing base in the global market, is becoming increasingly important, and Korean companies are demonstrating the high demand for loss prevention solutions in the field of disaster prevention,” he said.

“We anticipate that the Korean branch of FM Global will be able to meet their needs. FM Global will continue to provide services to global customers in Korea.”

FM Global Senior Vice President James Thompson stressed the growing need for a disaster recovery system to address such risks as climate change, cyber disasters, and supply chain attacks.

“The Korean market is crucial for confirming customer standards for FM Global’s innovative insurance and engineering-based loss prevention solutions,” said the official who is in charge of FM Global’s Asia Pacific division.

“We are proud and pleased that FM Global has been able to establish a more stable position in the Korean market based on the strong relationships we have built with Korean corporate customers for more than 20 years.”

Headquartered in Johnston, Rhode Island, FM Global specializes in loss prevention services, mainly to big corporations throughout the globe.

FM Global is famous for having an unconventional business model where the outfit determines risk and premiums through engineering analysis, unlike the traditional model based on actuarial calculations.

FM stands for factory mutual as the company’s founder Zachariah Allen started the business in 1835, attempting to reduce insurance premiums on mills and factories.