Hanwha Life Makes Strides in Vietnam by Capturing Both 'Growth and Stability'

Expansion of Sales Channels by Securing Full-Time Designers
Diversification of Products through Variable Insurance Launch

[Asia Economy Reporter Oh Hyung-gil] Hanwha Life plans to continue its success story by expanding sales channels and diversifying products in the Vietnamese market. Despite the impact of COVID-19, the company aims to become a leading local insurance company based on solid growth.

According to the insurance industry on the 5th, Hanwha Life disclosed its overseas country-specific entry strategies through its sustainability management report on the 2nd. Hanwha Life, which established the first insurance corporation in Vietnam in 2008, currently operates local subsidiaries in China and Indonesia, and representative offices in Beijing, China; Tokyo and Fukuoka, Japan; and San Francisco, USA.

The Vietnamese subsidiary surpassed its break-even point in 2016 through a localization strategy that trains local agents and launches products tailored to Vietnamese lifestyles. Last year, it recorded premium income of 171.4 billion KRW, achieving nearly 20% growth compared to the previous year. In the first quarter of this year, life insurance new contract premiums increased by 169.4 billion KRW year-on-year, continuing its growth trend.

Currently, it has expanded its branches to 144 nationwide, centered on major cities such as Ho Chi Minh City, Hanoi, and Da Nang, operating bancassurance (insurance sales through banks), group sales, and digital channels.

This year, Hanwha Life plans to introduce new sales products in the Vietnamese market. To meet the high local demand for investment products in a low-interest-rate era, it plans to diversify its product portfolio by developing and launching variable insurance. Since 2018, the Vietnamese subsidiary has been conducting research and development on protection-type insurance such as cancer insurance, and in 2019, it entered the group insurance market with new group protection insurance products.

Additionally, it is working to secure full-time agents among Vietnamese agents, most of whom work part-time. To encourage full-time work, it has introduced a full-time agent organization, providing regular daily education five days a week and separate training programs. A pilot branch composed solely of full-time agents is currently operating in Ho Chi Minh City, and there are plans to increase branches staffed exclusively by full-time agents.

After acquiring a local insurer and increasing its stake to 99.6%, the Indonesian subsidiary is building a high-efficiency individual agent organization centered in major cities such as Jakarta, Medan, and Surabaya, and pursuing a profit-based product sales strategy. The Chinese subsidiary, which surpassed its break-even point last year, is expanding its sales base from Zhejiang Province, where its headquarters is located, to Jiangsu and Anhui Provinces.

A Hanwha Life official said, "We plan to prioritize strengthening the sales competitiveness of our overseas sales subsidiaries in Vietnam, China, and Indonesia," adding, "We will seek opportunities to capture the digital-based financial market locally and secure future growth engines within the Asian region."