The 'K-Insurance' Wave... Insurers Smiling in Southeast Asia

Hanwha Life Vietnam Subsidiary Achieves Record High Performance
Samsung Life Expands Business Annually in Thailand

[Asia Economy Reporter Changhwan Lee] It has been revealed that Korean insurance companies are performing well in Southeast Asia. Southeast Asia, with its large young population and high growth potential, is a region where our insurance companies are actively expanding.

According to the insurance industry on the 6th, Hanwha Life Vietnam recorded its highest-ever operating revenue (sales) of 243 billion KRW last year. This is a 16.6% increase compared to the previous year's 208.4 billion KRW. Last year's net income also reached 8 billion KRW.

Hanwha Life, which first entered Vietnam in 2009, mainly sells interest rate-linked savings insurance locally. By employing mostly local staff as part of its localization policy, it has maintained profitability for several years, earning recognition for its successful establishment in the market.

Although Vietnam's life insurance market size based on total assets is only about 2.9% of Korea's, it is considered a market with very high growth potential. Since the 2000s, as Vietnam's economy and living standards have improved, awareness of insurance has also increased, and the life insurance market is rapidly expanding.

More than ten global insurance companies have entered the local market and are competing. Besides Hanwha Life, Shinhan Life from Korea officially started operations in Vietnam in January. Shinhan Life plans to expand its activities in the Vietnamese market focusing on bancassurance.

Indonesia and Thailand are also considered important markets for our insurance companies. Hanwha Life Indonesia turned profitable in 2019, six years after starting operations in October 2013. In 2020, it achieved a net income of 1.4 billion KRW and continued its growth by reaching 2.6 billion KRW in net income in 2021.

Samsung Life is expanding its business in Thailand. Samsung Life first entered Thailand in 1997 and has been growing its business every year since turning profitable in 2017. Focusing on survival and death insurance, its operating revenue last year was 199.1 billion KRW, and net income was 1.87 billion KRW, increasing by 5% and 101.5% respectively compared to the previous year.

An industry insider said, "Southeast Asia has a large young population but relatively few insurance subscribers, so the insurance market has very high growth potential," adding, "The image of Korea is also favorable, so our insurance companies are actively expanding into the region."

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