'COVID-19 Spread' Insurance Companies Worry About Potential Impact of 'New Southern Policy'

Alert to Potential Spread in Southeast Asia
Emergency Measures Communicated to Staff
Repatriation Ordered in Worst-Case Scenario

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] As COVID-19 infections spread from China to Southeast Asia, domestic insurance companies are anxiously concerned about whether their actively pursued New Southern Policy will be impacted.

The government has advised refraining from travel and visits to six regions where COVID-19 infections have been confirmed: Singapore, Japan, Malaysia, Vietnam, Thailand, and Taiwan.

Insurance companies note that the tension in Southeast Asia is relatively lower compared to China, but they are busy preparing countermeasures with the possibility of future spread in mind. They are disseminating emergency plans to employees working locally and are even considering repatriation in the worst-case scenario.

According to the insurance industry on the 13th, Hanwha Life repatriated all employees and their families working at its China branch last month. Hanwha Life’s China branch is located in Zhejiang Province near Hubei Province, where COVID-19 first broke out. Currently, Zhejiang Province is under city lockdown measures, and if they had not responded proactively, these employees might not have been able to leave the city.

Additionally, Hanwha Life is closely communicating with four employees working at its Vietnam branch and monitoring the local situation. A Hanwha Life official explained, "Vietnam is not yet at the stage to issue repatriation orders like China, but we will respond according to the local situation."

KB Insurance is spreading COVID-19 emergency response guidelines to its Southeast Asian branches following China. KB Insurance, which has a branch in Nanjing, China, has postponed the branch head’s client visits and seminar attendance, activated emergency contact networks, and established a response system including immediate reporting and leave measures upon symptom occurrence. Recently, the guidelines have also been disseminated to branches in Indonesia and Vietnam, putting overseas business sites into emergency mode.

A KB Insurance official said, "All families of employees staying in China have completed repatriation, and we plan to prioritize the safety of employees and local staff," adding, "However, contracts due for renewal by early this month that requested extensions have been completed, so there is no impact on insurance contract formation."

Hyundai Marine & Fire Insurance, operating a branch in Beijing, China, is implementing work-from-home measures locally until this week. Only essential personnel are coming to the office to prevent infection.

DB Insurance has instructed employees who worked at its Beijing office and returned home during the Lunar New Year holidays not to return to China yet. A DB Insurance official said, "We plan to allow travel to China once signs of COVID-19 transmission calming down are observed locally."

Overseas branches of insurance companies mainly generate relatively high sales targeting domestic companies operating locally, but since some sales are conducted through local agents or sales representatives, they are closely monitoring how long the impact of COVID-19 will last.

An executive of a major insurance company lamented, "Even when consultations or inquiries come from local clients, only a very small number of representatives respond during on-site visits, so normal business operations are practically impossible," adding, "We are communicating closely with local employees, but since last month when COVID-19 spread, all overseas business trips have been suspended, delaying strategy meetings." Another official expressed concern, "In a difficult domestic environment for insurance companies, the ban on business trips and difficulties in normal operations are causing us to waste time that could have been used to expand overseas bases."

This content was produced with the assistance of AI translation services.