Sung Daegyu, CEO of Shinhan Life, "Promoting Healthcare Subsidiary... Leap to a Top-tier Insurance Company" (Comprehensive)

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, Shaking Up 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] Shinhan Life Insurance and Orange Life have announced that their merged entity, 'Shinhan Life,' will launch on July 1, signaling a shift in the domestic life insurance market landscape. To expand into digital and healthcare sectors, the healthcare service platform 'Howfit' will be spun off as a subsidiary for focused growth, while a digital organizational restructuring and capability development will be undertaken.

Shinhan Life is expected to quickly secure the 4th position in the life insurance industry, potentially disrupting the traditional 'Big 3' structure dominated by Samsung Life, Hanwha Life, and Kyobo Life, according to market observers.

Seong Dae-gyu, appointed as the inaugural CEO of 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 ahead of other companies, we will establish a new paradigm in the existing insurance industry and become a top-tier insurer."

The conference was attended by CEO Seong and executives including Lee Young-jong, appointed head of Shinhan Life’s Strategic Planning Group and former CEO of Orange Life.

CEO Seong’s bold aspirations are likely not empty promises. The merger combines Shinhan Life’s strengths in bancassurance and telemarketing (TM) channels with Orange Life’s expertise in financial consultant (FC) sales, creating a synergy with far greater impact than expected.

The industry ranking will also leap to 4th place in the life insurance sector. As of the end of last year, the combined total assets of Shinhan Life and Orange Life reached 71.5 trillion KRW, the largest among financial group-affiliated life insurers. While ranked 4th by gross written premiums (7.9 trillion KRW), it ranks 2nd in net income (396.1 billion KRW). The solvency margin ratio (RBC), indicating financial soundness, stands at a leading 314.1%.

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 industry-leading financial soundness and become an insurer that adds new value to customers’ lives through developing new insurance products that benefit customers, mobile-based digital transformation, and expanding healthcare services."

To this end, the company plans to implement a multi-channel insurance business model that satisfies diverse customers. Shinhan Life will operate ▲ Orange Life’s FC channel optimized for the 20s to 40s age group ▲ Shinhan Life’s FC channel optimized for the 40s to 60s age group ▲ TM channel ▲ hybrid channel combining phone and face-to-face sales ▲ 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 handling high-net-worth clients and an Inheritance and Gift Research Institute. Additionally, we own Shinhan Financial Plus, a corporate agency (GA) subsidiary."

"Engaging in sincere dialogue with both companies’ labor unions... Overcoming restructuring concerns through growth"

Regarding the lagging personnel system during the merger process, CEO Seong plans to resolve issues through sincere dialogue.

Lee Young-jong, head of Shinhan Life’s Strategic Planning Group, said, "Although the company has unified, there are still two labor unions. Since the second half of last year, HR practitioners have gathered to create an integrated personnel system, and discussions are ongoing based on this."

On concerns about restructuring, CEO Seong stated, "We understand concerns about workforce efficiency due to the merger, but Shinhan Life is striving to absorb as many employees as possible through growth."

Shinhan Life is also accelerating digital innovation. It has established a digital strategy direction of ‘providing all insurance services 24 hours on mobile phones’ and ‘applying digital technology throughout the entire insurance process from start to finish,’ expanding the digital organization into one group with four departments.

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."

The company also plans to secure new growth engines 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 commence full-scale operations next year. The healthcare platform ‘Howfit’ is also pursuing service expansion and enhancement plans.

CEO Seong explained, "We aim to expand into healthcare. Currently, we are promoting healthcare business through the AI-based home training service 'Howfit,' and we plan to spin it off as a subsidiary to grow the healthcare business."

Seong, a former economic official and insurance expert with over 20 years of experience in insurance-related work, including serving as president of the Korea Insurance Development Institute, has continued his successful legacy by becoming the first CEO of Shinhan Life following his tenure as CEO of Shinhan Life Insurance.

He added, "Shinhan Life will establish itself as the most innovative yet fundamentally sound insurer that customers can trust, embodying sincerity. We aim to grow as the company leading Shinhan Financial Group’s mission of practicing warm-hearted finance."

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