The Determinants of Foreign Direct Investment for Korean Insurance Companies

Daigyo Seo; 신종협

Journal of Insurance and Finance

2009, 20(2), pp.161-189
Publisher : Korea Insurance Research Institute
Research Area : Business Management

Daigyo Seo ¹ , 신종협 ²

¹
² 보험연구원

ABSTRACT

This paper investigates the determinant of the patterns of Korean insurer’s foreign investment using a set of home country characteristics, foreign country characteristics and insurer-specific characteristics. The analysis reveals that important factors in determining whether Korean insurers participate in a given foreign country depend on the type of insurers. Financial services are more likely to attract life insurers, which implies that life insurers tend to expand toward financial markets of developed countries. In the case of non-life insurers, the bilateral trade is more important than other factors. It implies that non-life insurers are more likely to expand to the countries in which their domestic corporate clients choose to invest so as to be able to offer them the services they need. The result also suggests that insurers with a larger scale of per capita assets would tend to more expand abroad.
KEYWORDS

financial services , follow the clients , foreign direct investment , insurance companies
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