Hanwha Life Sales Channel Separation... "Leap to a Mega Sales Specialist Company"

Among the Top 3 Life Insurers, First
100% Subsidiary Aiming to Launch in April Next Year
Total Capital of 650 Billion KRW
Rising to Industry No.1 in Both Agents and Capital

[Asia Economy Reporter Ki Ha-young] Hanwha Life Insurance is separating its exclusive sales channel. Among the big three life insurance companies, Hanwha Life is the first to implement a separation of underwriting and sales. Hanwha Life plans to become the industry's largest specialized sales company to maximize profits and establish a foundation for sustainable growth.

On the 18th, Hanwha Life announced that it resolved to promote the establishment of a specialized sales company through an extraordinary board meeting. This is to convert the exclusive financial planner (FP) channel into a sales company to strengthen competitiveness by securing sales expertise.

The newly established specialized sales company will be named "Hanwha Life Financial Services (tentative)" and will be set up as a 100% subsidiary of Hanwha Life. The establishment method involves a physical division spin-off of the exclusive sales channel within Hanwha Life. The goal is to launch on April 1 next year after a shareholders' meeting in March.

Once Hanwha Life Financial Services is established, it will become a mega-sized specialized sales company with about 540 sales offices, approximately 1,400 employees, and 20,000 FPs. Considering that the current industry leader has about 15,000 planners, this will immediately make it the number one in the industry. It is also unrivaled in terms of capital size. The total capital of the new specialized sales company will be 650 billion KRW.

Hanwha Life plans to increase corporate value and lay the foundation for sustainable growth by stabilizing profits through economies of scale with the establishment of the new specialized sales company.

Since the physical division method was chosen, sales management personnel will transfer as is without artificial restructuring. Working conditions will remain the same as now.

Hanwha Life intends to strengthen expertise in each field to enhance mutual synergy between the headquarters and the specialized sales company. The headquarters will focus on support tasks such as product development combining various benefits and services, insurance underwriting, examination, payment, asset management, and responding to changes in the digital environment through technology development. The newly established specialized sales company will focus on sales capabilities to expand market dominance.

For FPs, there will be no changes other than the change of affiliated corporation. On the contrary, with the addition of non-life insurance products, the sales portfolio will diversify, expanding their scope of activities. They will gain sales competitiveness that did not exist in the existing exclusive channel, which is expected to increase income.

A Hanwha Life official said, "This company is fundamentally different from the existing subsidiary-type GA, and we plan to develop it into a global number one specialized sales company with sales exceeding 1 trillion KRW in the future," adding, "Through strengthening sales capabilities and digital financial platform services, we will provide customers with more choices and become the industry's top life insurance company and specialized sales company, respectively."

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