Gearing up for Earth-shaking Changes

Insurance firms creating new road maps to prepare for changes under new law

The common concern in the insurance industry is attaining 'possible sustainable growth'under the Capital Market Consolidation Act, which will come into effect sometime next year with the parliamentary approval already gained.
Samsung Life Insurance, the largest life insurer in the country, has set up its slogan, "Leading global insurer, guaranteeing financial stability,"this year being its 50th anniversary. The Samsung affiliate has been striving to reform its management mode by strengthening its two major business areas of pension and guarantee insurance and creating new revenue sources through reestablishment of its business areas. Samsung Life will work to have its annual revenue to reach 60 trillion won in 2015, total asset of 260 trillion won, and annual profit of 2.5 trillion won with ROE reaching 15 percent to make the company rank the 15th largest among life insurance firms in the world.
Korea Life Insurance Co.
drew up its corporate vision 'Different No.1, 2010'to cope with various changes to be brought on by the new act and modify its operations.
Its new vision calls for the company becoming the most loved life insurer by customers; the company that every one loves to work for; and the No.1 company for creating new value for its shareholders.
Kyobo Life changed its operational paradigm from volume to value for its sustainable growth when Chairman Shin Chang-jae took over the management in 2000. The new CEO felt that the industry's infatuation with expanding volume, at the expense of value did more harm than good to the industry. As such, the insurance company has been pursuing a number of management goals; first, to make itself customer oriented with growth in profit; enhancing the capabilities to manage brand power, and risks and change its corporate culture to be more results oriented.
Allianz Life has adopted 'a life insurance firm moving toward to become a strong and profitable and customer centered under its management catchphrase of 'Aspiration 2011.
'The company's four major tasks on hand are reform through thinking, management for customers, and performance result oriented corporate culture.
In the meantime, the non-life insurance industry sees the next several years a decisive period for determining its future due to the FTAs with foreign countries, most notably with the United States, the introduction of the Capital Market Consolidation Act the sale of bancassurance, automobile insurance and cross-sale of insurance products.
Samsung Fire, for one, has been working on a number of strategies to make it a super insurance firm in the world. It has been pushing making profit its top management goal, securing the base for sustainable growth, doubling its capacity to face changes, and the completion of clear and transparent management. The company has also been trying to strengthen its insurance technologies and raise its consultancy capability, in addition to the effort to develop new products in line with increases in aging population and to have synergy with existing products.
Hyundai Marine Fire has adopted, "Hi, 2010, An Insurance Firm with Top Competitive Edge,"as its slogan. The company has been straining to steer its management to take care of customers and shareholders first, the creation of culture based on trust and pre-emptive actions to counter changes in the future.
The company is in the process of turning its affiliate Hyundai Marine Investment Consultancy to an asset management firm to be ready when the new law comes into effect.
Dongbu Fire set its slogan as becoming a globally competitive firm, creating customer values, a super insurance firm. The company has been striving to provide products and services that will not only satisfy its customers, but move them and be extremely hard working to explore overseas markets and improve operations in the domestic market.
Dongbu Fire will increase its operation in China by investing more in stakes in Chinese insurance companies.
LIG Fire has decided that this year to be the initial year for its sustainable growth. The aim is to make itself the top firm in the country's insurance market not only in sales, but also in quality of its business. The company is ready to put all of its resources and systems behind its efforts for long-term growth plans and general insurance sales expansion.
LIG Fire Insurance President Kim Woo-jin said he will try to manage the company to do its social responsibility as a viable company with the expansion of customer satisfaction and sharing management. nw

President Lee Soo-chang of Samsung Life Insurance Co.

Chairman Shin Chang-jae of Kyobo Life Insurance Co.

Vice Chairman Shin Eun-cheol of Korea Life Insurance Co.

President Choe Byung-gil of Kumho Life Insurance Co.