Strengthening Non-Bank Capabilities Within the Group
Shinhan-Orange Life 'Integration'
KB Life-Prudential 'Capability Enhancement'
Hana General Insurance 'Market Expansion'
[Asia Economy Reporter Oh Hyung-gil] Insurance companies incorporated as subsidiaries of financial groups are making swift moves for a "second leap" in the new year. Holding the key to strengthening non-banking capabilities within their groups, their performance could significantly impact the insurance industry.
Shinhan Life and Orange Life have emphasized "integration," while KB Life and Prudential Life have focused on "capacity enhancement." Hana General Insurance plans to go all-in on a "market expansion" strategy.
According to the insurance industry on the 21st, Hana General Insurance recently began recruiting experienced professionals in digital insurance service product development and long-term insurance. Since its fresh start as Hana General Insurance on June 1 last year, after transitioning from The-K Non-Life Insurance, the company has been focusing on expanding its workforce.
Hana General Insurance's cumulative gross written premium for the third quarter of last year was 392 billion KRW, with automobile insurance accounting for 239.8 billion KRW, or 61%. This is seen as a strategic move to expand its product portfolio, which has been concentrated on automobile insurance, into long-term insurance. Recently, it launched the "Hana Fully Covered Cancer Insurance," which strengthened its competitive edge by covering proton beam therapy for cancer, targeted anticancer drug therapy, and healthcare services.
To strengthen its sales capabilities, Hana General Insurance is also preparing to establish an insurance brokerage subsidiary. In November last year, the board of directors decided to set up a subsidiary for insurance agency and brokerage business.
Kwon Tae-gyun, CEO of Hana General Insurance, stated in his New Year's message, "We will focus on acquiring customers, the foundation of profit generation," adding, "We will maximize customer touchpoints by partnering with various platforms, provide products and innovative insurance service experiences that customers desire, and expand our foundation through synergy with group affiliates."
Kwon Tae-gyun, CEO of Hana Insurance
Prudential Life, which became a new member of KB Financial Group last year, is concentrating on strengthening its own capabilities. With the corporate culture shifting from a free foreign company to a financial group subsidiary, it first addressed employees' anticipated changes and concerns.
To improve work efficiency for employees, a smart office was introduced at headquarters, and to expand the sales method that was mainly agent-centered, "Omni Subscription," which enhances non-face-to-face competitiveness, was implemented.
At the end of last year, under the name of cost reduction and organizational efficiency, 13 out of 76 branches were consolidated, with plans to establish itself as a core affiliate within the KB Group. Min Ki-sik, CEO of Prudential Life, has been leading organizational restructuring through multiple town hall meetings with employees.
KB Life, which is expected to merge with Prudential in the long term, is also participating in changes by establishing a comprehensive sales channel management system and expanding the Digital Business Division through organizational restructuring.
To build a differentiated brand for the variable business, a Variable Business Department was newly established under the Customer-Product-Channel (CPC) Strategy Headquarters, and the organization previously operated as the Digital Business Office was expanded and reorganized into a headquarters. This is to nurture it as a future profit-generating channel.
Shinhan Life and Orange Life, scheduled to launch as "Shinhan Life" in July, are accelerating their integration efforts. They plan to recruit a joint new employee class for both companies in April.
Seong Dae-gyu, CEO of Shinhan Life, stated, "The most important values are maximizing customer value and strengthening sales competitiveness," and revealed this year's management goal: "We will invest the reinforced personnel and resources through integration into strengthening sales channel competitiveness."
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