Insurance Companies Digging Different Wells Instead of Insurance... Must Change to Survive (Comprehensive)

Promotion Agency for Insurance Premium Payment Accounts
Including Health Management and Music Revenue

[Asia Economy Reporter Oh Hyung-gil] "Insurance companies cannot just sell insurance." They are actively expanding their business into new areas beyond traditional insurance, ranging from health management to music revenue. Their moves to increase consumer intimacy by launching bottled water and ramen also draw attention.

According to the insurance industry on the 16th, KB Insurance recently reported ancillary business for promoting insurance premium payment accounts. The purpose is for KB Insurance's exclusive insurance planners or call center counselors to engage in a kind of marketing activity by changing or designating the payment account to a specific bank account for existing customers' payment accounts or customers signing new long-term insurance contracts.

When registered as a payment account, the bank pays a certain fee to the customer, and KB Insurance receives a commission from the bank. It is expected to create synergy with its affiliate KB Bank in acquiring customers.

Samsung Life Insurance applied to the financial authorities for a total of three ancillary businesses: health management services for policyholders and the general public, credit card agent management, and credit card agent education support services.

In October, Samsung Life signed an agreement with Hanyang University Digital Healthcare Center to cooperate in developing digital healthcare content and services related to mental health. Through the disease onset prediction solution of the digital healthcare company Chang Healthcare, customers can easily check their health status and receive annual reports for consistent health management. Additionally, agents will also engage in card sales to increase their additional income.

Bottled Water, Ramen Launches, and Goods Marketing

This year, Hanwha Life also entered the health management service market for the general public. Through the digital health management service application "Hello," it provides health management services and content. Recently, it launched subscription insurance reflecting the subscription economy, offering services such as childcare, purchasing supplements, and diet exercise.

Shinhan Life plans to engage in social contribution activities using profits earned from music production. They will officially release music used in advertisements and utilize the generated profits for ESG (Environmental, Social, and Governance) activities.

Foreign insurance companies have also ventured into new ancillary businesses. The Korean branch of Swiss Re, a global reinsurer, reported advisory services related to insurance business and management consulting, while RGA Reinsurance Korea branch reported advisory services for solution development using big data and fintech.

They also introduced new marketing by producing daily necessities or souvenirs, so-called "goods," in collaboration with distribution companies. Samsung Life Insurance collaborated with E-Mart and Lotte Chilsung to launch Samsung Life Water (Samsung Saemul-su) and Samsung Life Rice (Samsung Saemul-mi), Shinhan Life and BGF Retail launched Shinhan Saengmyeon, and Lotte Insurance operates an online goods store.

Insurance companies' extracurricular activities are expected to increase further. The financial authorities have also decided to promote regulatory modernization by broadly allowing subsidiary ownership and ancillary business operations.

At a meeting with CEOs of life insurance companies, Jeong Eun-bo, Governor of the Financial Supervisory Service, said, "We will broadly allow insurance companies to own subsidiaries and conduct ancillary businesses to enable asset management and healthcare activation, and modernize related regulations to allow insurance solicitation using digital new technologies such as video calls and chatbots."

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