'Shinhan, KB, Hana' Financial Groups' Insurance Companies' '3-Color Survival Strategies' (Comprehensive)

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 the group, their performance could have a significant impact on 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, of which automobile insurance accounted for 239.8 billion KRW, or 61%. This is seen as a strategic move to expand its product portfolio, which is 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.

Hana General Insurance is also preparing to establish an insurance brokerage subsidiary to strengthen its sales capabilities. In November last year, the board of directors decided to establish a subsidiary for insurance agency and brokerage business.

Kwon Tae-gyun, CEO of Hana General Insurance, stated in his New Year's message, "We plan to 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 synergies with group affiliates."

Prudential Life, which joined KB Financial Group last year, is focusing on strengthening its own capabilities. With the corporate culture shifting from a free foreign company to a financial group subsidiary, it first addressed the changes and concerns felt by employees.

To increase work efficiency for employees, a smart office was introduced at the headquarters, and to expand the sales method that was centered on agents, 'Omni Subscription,' which enhances non-face-to-face competitiveness, was implemented.

At the end of last year, 13 out of 76 branches were consolidated under the name of cost reduction and organizational efficiency, 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 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 division. This is to nurture it as a future profit-generating channel.

Sung Dae-gyu, President of Shinhan Life Insurance

Shinhan Life and Orange Life, set to launch as 'Shinhan Life' in July, are accelerating their integration efforts. They plan to recruit through a joint open recruitment 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 from the integration into strengthening sales channel competitiveness."

Lee Young-jong, CEO of Orange Life, said at the '2021 Sales Strategy Meeting' held via internet broadcast on the 21st, "To ensure the successful launch of Shinhan Life, we will continuously maintain an advanced capital and risk management system that meets global standards," adding, "We will support company-wide resources and capabilities to strengthen the core competitiveness of the financial consultant (FC) channel."

The meeting, held under the theme 'Change is The Chance,' was attended by about 30 executives, division heads, and branch managers, while deputy branch managers (SL) and FCs nationwide participated via Zoom and YouTube. Seong Dae-gyu, CEO of Shinhan Life and the designated inaugural CEO of the integrated Shinhan Life, also attended.

CEO Lee said, "We have always responded wisely with an open mind whenever facing challenges and changes, and I am confident that this strength has made us who we are today," urging, "Let us take pride in writing a history of innovation that will bring a new wind to the insurance industry and turn change into opportunity."

Lee Young-jong, CEO of Orange Life, stated at the '2021 Sales Strategy Meeting' held via internet broadcast on the 21st, "We will continuously maintain an advanced capital and risk management system that meets global standards for the successful launch of Shinhan Life," and added, "We will support company-wide resources and capabilities to strengthen the core competitiveness of the Financial Consultant (FC) channel."