Sung Daegyu, CEO of Shinhan Life, Challenges the 'Big 3': "I Will Make It a Top-Tier Insurer"

Shinhan Life and Orange Life to Launch Integrated Corporation on July 1
Designated CEO Sung Dae-gyu: "Accelerating Digital and Healthcare"
Eyeing 4th Place in Life Insurance Industry, Challenging the 'Big 3' Structure

Sung Dae-gyu, the designated CEO of Shinhan Life, stated at a press conference held on the 15th at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul, "We will become a leading insurance company that presents a new paradigm in the existing insurance industry through proactive challenges and innovation."

[Asia Economy Reporter Oh Hyung-gil] The launch of the integrated corporation 'Shinhan Life' from Shinhan Life Insurance and Orange Life on July 1 is set to bring about a significant shift in the domestic life insurance market. Market observers predict that Shinhan Life, by securing the 4th position in the life insurance industry, could disrupt the traditional 'Big 3' structure of Samsung Life Insurance, Hanwha Life Insurance, and Kyobo Life Insurance.

Seong Dae-gyu, appointed as the inaugural CEO of the newly unified Shinhan Life, expressed his ambition on the 15th to implement a multi-channel insurance business model and accelerate digital and healthcare businesses, aiming to leap forward as a 'top-tier insurer' and challenge the Big 3.

At a press conference held at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul, CEO Seong stated, "Through challenges and innovations that are one step ahead of other companies, we will establish ourselves as a top-tier insurer presenting a new paradigm in the existing insurance industry."

The press conference was attended by CEO Seong and other executives, including Lee Young-jong, CEO of Orange Life, who has been appointed as head of Shinhan Life’s Strategic Planning Group.

CEO Seong’s bold aspirations are likely not empty words. The integration of Shinhan Life, which excels in bancassurance and telemarketing (TM) channels, with Orange Life, specialized in financial planner (FP) sales, is expected to generate a far more powerful synergy than anticipated.

The industry ranking will also jump to 4th place in the life insurance sector. According to the Life Insurance Association, the combined total assets of Shinhan Life Insurance and Orange Life reached 71.5 trillion KRW as of the end of last year, making it the largest among financial group-affiliated life insurers. While it ranks 4th in terms of premium income (7.9 trillion KRW), it is 2nd in net profit (396.1 billion KRW). The solvency margin ratio (RBC), which indicates an insurer’s financial soundness, stands at 314.1%, placing it among the top.

CEO Seong emphasized, "Based on solid financial soundness, we will manage the company stably so that customers can trust and entrust their assets for life. We will maintain the industry's highest level of financial soundness and become an insurer that adds new value to customers' lives through the development of new insurance products that benefit customers, mobile-based digital transformation, and expansion of healthcare services."

To this end, the company plans to implement a multi-channel insurance business model that can satisfy diverse customers. Shinhan Life will have ▲ Orange Life’s FP channel optimized for the 20s to 40s age group ▲ Shinhan Life’s FP channel optimized for the 40s to 60s age group ▲ TM channel ▲ hybrid channel combining telephone and face-to-face sales ▲ and a digital sales channel for mobile insurance subscriptions.

CEO Seong explained, "It is possible to provide products tailored to customers’ needs through the channels they prefer. We also plan to operate a Wealth Manager (WM) organization responsible for high-net-worth clients and an Inheritance and Gift Research Institute. Additionally, we own Shinhan Financial Plus, a corporate agency (GA) subsidiary."

Digital innovation will also be accelerated. The digital strategy direction has been established as ‘providing all insurance services 24 hours a day on mobile phones’ and ‘applying digital technology throughout the entire insurance process from start to finish.’ The digital organization has been expanded to one group with four departments.

New growth engines will be secured in healthcare and overseas businesses. Previously, Shinhan Financial Plus acquired a large GA to realize economies of scale, and the Vietnam overseas subsidiary obtained local regulatory approval to begin full-scale operations next year. The healthcare platform ‘Howfit’ is also pursuing expansion of partnership services and advanced development plans.

CEO Seong stated, "Shinhan Life will establish itself as the most innovative yet fundamentally sound insurer that customers can trust, with sincerity at its core. We aim to grow into the company that leads Shinhan Financial Group’s mission of practicing warm-hearted finance."

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