Global Management
After successfully penetrating the Vietnamese market, Hanwha Life Insurance is actively executing its global management in China and Indonesia too.
Since its entry into Vietnam in 2009, Hanwha Life Insurance has seen the number of its new contracts increase by 5 times, from 30.8 billion VND (US$1.45 million) in 2009 to 145.9 billion VND (US$6.872 million) in 2013. The company's business in China has also stabilized only one year after its penetration into the market.
In addition, the firm held an event to celebrate the completion of the Happy House project in Long An Province in July as part of its social contribution to Vietnam. The project started last year, and a total of 133 brick houses (93 in 2012 and 40 in 2014) were built and donated to those who are in need.
Sino-Korea Life Insurance, a 50:50 joint venture between Hanwha Life Insurance and Zhejiang International Business Group, posted 89.3 million yuan (16.1 billion won or US$14.6 million as of December 2013) in initial premiums one year after beginning operations. As a result, the joint venture became the fourth-largest foreign life insurance firm in Zhejiang Sheng, beating nine other rival companies, with a 9.1 percent market share.
The success of Sino-Korea Life Insurance is attributable to its multi-channel strategy and successful localization based on its 10-year analysis of the Chinese market. When the joint venture opened for business, it pursed a strategy that targets individual planners, banks, and group channels.
Currently, 200 insurance brokers who were selected when the company launched the business in the country are working in China. The firm also entered into bancassurance with Industrial and Commercial Bank of China, China Construction Bank, and the Agricultural Bank of China. Also, it is selling endowment insurance and pension insurance that are preferred by local customers through 180 branches nationwide.
On top of that, Sino-Korea Life Insurance is making efforts to approach local customers with a friendly image by fulfilling corporate social responsibility. For example, it provided free premium subscriptions to exemplary police officers in Zhejiang Sheng, held blood drives in the quake-hit city of Yaan, and launched environmental campaigns.
The company is planning to move forward with a growth strategy based on its success, as shown by the opening of three branches in Hangzhou, Ningbo, and Jinhua only one year after its penetration into the country.
Starting in Taizhou, the joint venture is planning to expand its business network in major cities in Zhejiang Sheng this year. From next year, it plans to expand its reach to Shanghai and Jiangsu Sheng in order to build a nationwide business network.
Based on this successful overseas expansion, Hanwha Life Insurance is considering whether or not to enter other Asian countries like Hong Kong, Malaysia, or Singapore.
The Chinese life insurance market is the fifth-largest market in the world, in which US$141.2 billion of premium income was reported in 2012. The market is growing roughly 15 percent each year due to a rise in individual income propelled by the nation's economic growth and the rapidly-increasing aged population. It is expected to become the largest life insurance market by 2030.