[Becoming an Insurance Insider] Establishing Subsidiaries and Fostering In-House Ventures... Insurers Say "Anything Goes for Innovation"

From Healthcare to Establishing a Sales-Focused Subsidiary
Fostering Internal Ventures... Responding to Digital Innovation

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[Asia Economy Reporter Oh Hyung-gil] Dongyang Life Insurance launched its telemarketing sales subsidiary 'MyAngel Financial Services' on the 10th. It is an organization spun off from the in-house telemarketing team with a capital of 10 billion KRW. About 1,000 exclusive consultants work there, starting with sales of existing products such as cancer insurance, whole life insurance, and term insurance, and plan to expand the sales portfolio by adding non-life insurance products within the first half of the year.

Insurance companies are accelerating business innovation by separating existing departments and establishing new subsidiaries.

Subsidiaries were chosen as a way to diversify sales channels or enter new digital-based businesses. They also nurture in-house ventures with quick decision-making and agility. This is interpreted as an attempt to break away from the conservative image of insurance.

According to the insurance industry on the 16th, four insurance companies established subsidiary-type GA (General Agency) companies last year, and some insurance companies have launched subsidiaries to provide healthcare services.

KB Healthcare, established as a subsidiary of KB Non-Life Insurance last October, is preparing to build a competitive healthcare platform through collaboration with various partners. Following Bit Computer and Theragen Bio, it has also partnered with food company Ourhome for new service research.

It plans to start full-scale operations through digital health management services via mobile applications and health management services linked with partner companies.

Shinhan Life's health management subsidiary 'Shinhan Cube On,' established last month, plans to operate with about 20 personnel in a startup-style manner in all aspects including organization, compensation, and evaluation.

Subsidiary-type corporate agencies (GA) are being established to strengthen existing sales.

Hanwha Life Insurance launched Hanwha Life Financial Services in April. It created the industry's largest organization with about 19,000 planners as of the launch date.

Also, Mirae Asset Life Insurance operates Mirae Asset Financial Services, and Hyundai Marine & Fire Insurance runs My Financial Partner. Hana Life is also strengthening sales with its subsidiary-type GA, Hana Financial Find. Kyobo Life and DGB Life are also reportedly considering establishing subsidiary-type GAs.

The launch of insurance company subsidiaries is expected to increase further. Financial authorities intend to encourage insurance companies to enter various fields such as healthcare and asset management through subsidiaries.

Jung Eun-bo, Governor of the Financial Supervisory Service, stated at a meeting with life insurance CEOs, "We will broadly allow insurance companies to own subsidiaries and conduct ancillary businesses to enable asset management and healthcare activation."

Some insurance companies are also fostering in-house ventures to create new growth engines.

Kyobo Life Insurance selected nine teams through an in-house startup idea contest and plans to verify the business feasibility of in-house ventures and support commercialization and startup preparation through a one-year in-house venture acceleration program. They also provide separate office space to focus on startups, cover app development, marketing, and other related costs, and support business coaching through external expert consulting and startup meetings.

Samsung Life CEO Jeon Young-mook also said in his New Year's address earlier this year, "We must drastically strengthen digital capabilities and hasten the development of innovative digital-based products," and added, "We will further expand the in-house venture system so that employees' diverse and creative new business ideas can flourish."