Korea's first dedicated pet insurer set to launch next month
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MyBrown, Korea's first insurer dedicated solely to pet insurance, is set to launch next month after securing final approval from the Financial Services Commission (FSC), according to company and industry officials, Sunday.
This marks the first full license granted under the small-amount, short-term insurance system introduced in 2021, signaling a potential turning point for the insurance industry. The system allows companies with at least 2 billion won ($1.5 million) in capital to offer specialized insurance products tailored to everyday needs.
MyBrown received its business license from the country's top financial regulator last Wednesday, allowing it to operate as a small-amount, short-term insurer specializing in pet insurance.
Founded in March last year, the company received preliminary approval in September and has since fulfilled all necessary requirements, including capital funding, staffing and system development, over the past nine months.
MyBrown said its mission is to improve standards in veterinary care and reduce the financial burden on pet owners. It sets itself apart by operating through a dedicated team and an independent structure, unlike traditional insurers, which have treated pet insurance as a secondary offering.
The firm was established with an initial capital of 13.2 billion won, backed by key investors such as Samsung Life Insurance, Samsung Fire & Marine Insurance, Green Cross Veterinary Products and Woorien. Their involvement is widely seen as a sign of strong confidence in the future growth of Korea’s pet insurance market.
"As the nation's first dedicated pet insurance provider, we believe it is highly meaningful to have laid the institutional groundwork for improving access to veterinary care and easing the financial burden on pet owners, marking a key turning point for the industry," a MyBrown official said.
The domestic pet insurance market has grown rapidly, with 162,111 policies held by 10 insurers at the end of last year — a 23-fold increase since 2018.
However, the insurance penetration rate remains low at 2.1 percent of an estimated 7.76 million pets due mainly to the lack of standardized systems for policy registration, claims and gathering medical data.
Industry officials noted that variations in veterinary treatments, terminology and costs hinder product development and claims processing.
However, they said, hopes for regulatory reform are growing with the launch of the new administration, as President Lee Jae-myung has prioritized easing pet care expenses by proposing the introduction of a standardized fee system for animal treatments as one of his top 10 policy goals.
"Without changes to the system, the pet insurance market's expansion will be limited," an official from the non-life insurance industry said. "To succeed, pet insurers will need to offer specialized services and develop unique risk coverage products."