Hanwha Life Insurance Co. held the 2016 Business Strategy Meeting at the training center in Yongin City, Gyeonggi Province, on Dec. 18, attended by 220 officials, including CEO Cha Nam-gyu and executives, team leaders and headquarters sales managers.
At the meeting, the company set up its 4 medium and long-term strategies – the “world-class business ability establishment,” “management effectiveness maximization for sustainable growth,” “continuous expansion of future growth engines,” and “change-driven corporate culture setup.” Ushering in the era of 100 trillion won (US$84.93 billion) of assets in 2016, the company is planning to take advantage of a crisis as an opportunity to set the foundation for sustainable growth by strengthening its business competitiveness and radical innovation.
For specific action plans, Hanwha Life Insurance will push ahead with differentiated marketing activities by customer life cycle, and establish customer management infrastructure using Big Data in the sales sector in order to build up the basis for customer-centered value growth.
In addition, the company will help establish a complete sales culture by strengthening follow-up service internal control standards after the sale of insurance products, and strengthen customer service abilities in customer interaction centers such as call and customer service centers. It will also start developing a Robo Advisor in a bid to support asset allocation of customers who have equity-linked life insurance. At the same time, Hanwha Life Insurance will add new types of funds and recommend funds, which suit customers’ risk-taking propensity, securing customized portfolios.
In order to correspond to the expansion of unstable financial markets at home and abroad and the continuance of low interest rate conditions after the rise in U.S. interest rates, the company will build profit-oriented portfolios that can create stable earnings in the long term in the investment sector. In addition, it will strengthen the function of market flexible strategy implementation, according to environmental changes in the financial market, to conduct stock allocations, bond duration control and active rebalancing. To secure new profit sources, it is planning to gradually expand the percentage of the current 12 percent of foreign investment and 14 percent of alternative investment. Also, it will seek new investment asset products such as raw materials and overseas preferred stocks, and strengthen the risk management by diversifying investment regions and vehicles at the same time.
In order to bolster the overseas business, Hanwha Life Insurance set up the goal to turn into profit-making in 2016 and to become one of the top five insurance companies by 2020 by completing the business network establishment in Vietnam, in which the company entered the market seven years ago, and improving efficiency. Also, the company plans to make its subsidiary in China the No. 1 foreign investment company in Zhejiang Province in order to lay the foundation to push into the new markets of Shanghai and Jiangsu Province. Moreover, the subsidiary in Indonesia will pursue a growth strategy by diversifying sales outlets, including the new establishment of bancassurance partnerships.
Hanwha Life Insurance plans to actively propel its fintech business for stronger competitiveness. With the activation of the new e-subscription system, which has been upgraded from the second half of last year, the e-subscription rate is expected to exceed 50 percent by the end of the year, surging from as low as 5 percent at the end of last year. The auto claim system and new concept app “mobile center” have also opened. The company will keep strengthening its existing businesses in 2016 and developing direct lending products, which are based on fintech credit evaluation prototypes, expanding the convergence of fintech to every sector. As the only insurance company in the K-bank consortium to run an online-only bank, Hanwha Life Insurance will bolster its competitiveness through an online insurance product called “Onsure” and loans with medium interest rates.