NU Online News Service

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The insurance industry is lauding the new trade pact reachedbetween the U.S. and South Korean governments.

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According to officials at the American Insurance Association,South Korea's insurance market is one of the top 10 largest in theworld, yet its foreign market share is only three percent, according to datacompiled by the U.S. International Trade Commissioner.

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"The landmark announcement is a huge success for both countriesand sets a welcomed precedent for subsequent free trade agreementsmoving forward," said David Snyder, AIA vice president andassociate general counsel.

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"AIA is thrilled that the U.S. and Korea were able to come toterms over this historic trade agreement," says Snyder

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"Moreover, we were pleased to see the Obama administration givethis trade agreement the consideration it deserved, given itscritical financial importance to both countries."

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He said that an open insurance market in Korea is commerciallysignificant for U.S. companies that want to increase the amount ofinsurance they presently write in Korea.

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"The KORUS agreement is particularly significant as it sets anew and higher standard for insurance provisions in free tradeagreements," Snyder says.

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"It recognizes that regulation of insurers should be transparentand equal regardless of whether the regulation is by government orindustry groups and places restraints on the existinggovernment-run insurance system in Korea," says Snyder.

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The Chubb Corporation, meanwhile, called on Congress to quicklyapprove the trade agreement.

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"Congressional approval of the agreement will strengthen Chubb'sefforts in this key market, where we offer a range of cutting-edgeproperty and casualty insurance coverages," says Harold L. MorrisonJr., executive vice president and chief global field officer forChubb.

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He noted that Chubb has had a presence in South Korea for morethan 18 years.

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