On Tract in Vietnam

Korea Life Insurance early start of its operation in Vietnam pays off with 11 branches with plans to double them soon

(L)Vice Chairman Shin Hyun-cheol of Korea Life Insurance Co. (R) A view of Korea Life Vietnam office in Ho Chi Minh City, Vietnam.

Korea Life Insurance Co., the first Korean life insurer ever to operate in Vietnam, has been given big credit for its successful overseas operations, which began in 2005, the company said recently.
The company launched its Vietnam operation in 2005, selling its life insurance policies three years after opening its liaison office in Hanoi.
The company's success is further surprising, knowing that it took far longer for other foreign insurance firms to post such a record. Korea Life officials noted that the envious record was possible thanks to huge contributions that Korean firms have made to the growth of the Vietnamese economy, although the reputation of Korea Life has also been a big factor.
Korea Life's Vietnam operation collected $3.3 million in premiums, up 67 percent from the previous year, with the company sharing 1.8 percent of the new life insurance market and a target of 2.5 percent for 2011.
Korea Life Vietnam launched the sale of its life insurance products in Vietnam with three branches ─ two in Ho Chi Minh City and one in Hanoi ─ in 2005, but the number expanded to 11 with the addition of eight new branches in such cities as Dongnai and Kainhoa. The number of local employees also expanded to 100 with financial planners totaling over 4,300.
The wholly-owned subsidiary of Korea Life plans to expand the number of branches to 22 by 2013, building a nationwide network, and the number of financial planners will be increased to 9,000 within three years. The collection of annual premiums is projected to increase to $35 million for a 7 percent new life insurance market share in the country.
Korea Life has been able to build a successful operation in Vietnam due to its localization strategy with only three Korean officers working for its Vietnamese subsidiary among some 100 employees. They know the life insurance market in Vietnam very well and can communicate with the financial designers easily at any time.
Social service work done by Korea Life Vietnam has also been a great help for its excellent performance, as the Vietnamese appreciate what the company has been doing for them since its arrival in the country, thus boosting the friendly image of its Vietnamese operation. Officers and staff of the company visit children's hospitals in Ho Chi Minh and Hanoi and give them something to eat between meals every month.
They also give blood and provide health checks to women customers, among the various social service events the company provides regularly as listed on its homepage. Korea Life Vietnam has also been engaged in building the House of Love and provides support to centers for the handicapped among its diverse social services in Vietnam.
President Hyun Jong-sup of Korea Life Vietnam said the insurance industry has been growing at a 10 percent annual clip lately. People under 30 years of age make up more than 60 percent of Vietnam's entire population, offering great growth potential in the life insurance market.
That is not to say that the Vietnamese operation is without problems. Many financial designers change companies, posing a problem for life insurance firms. CEO Hyun said the company cleaned up all of the contracts with problems in order to focus on real growth, not just the growth of sales.
The origins of Korea Life Insurance date back to 1946, when the company pioneered the Korean insurance industry as the nation's first insurance provider. For the past 64 years, Korea Life has been serving millions of individual policyholders and in doing so has now grown to be one of Korea's most prominent financial services providers with total assets of 57 trillion won.
Today, as the leader of the Hanhwa Financial Network, Korea Life is striving to be the leading provider of insurance and financial services to help its policyholders safeguard their financial well being.
While achieving organic growth, Korea Life has solidified its financial strength; the company received an AAA solvency rating from Korea Management Consulting and Credit Rating Corp. and from NICE Investors Service in 2008 and 2009, respectively. nw


Photos on courtesy of Korea Life