Shinhan Life Insurance provides its services through distribution channels consisting of financial planners, telemarketers, agency marketers and bancassurance specialists.
Many life insurance firms are trying to incorporate fintech into their operations now that their operational environment has been worsening and to cope with a fast-changing digital environment.
Shinhan Life has been focusing on the development of products and services attuned to customers’ needs and market trends. The company came up with the Human Body Certification Service in September for the first time in the insurance industry in Korea. This certification system involves the verification of a person by part of his body, which is not stored in the server to strengthen security measures.
The system is so outstanding that the financial industry is about to adopt it to replace the “secret pin” number being used for identification.
On Sept. 4, Shinhan Life also introduced a new life insurance product for death and post-retirement, which allows the policyholders to draw 5 percent of the premiums paid for the death insurance policies annually for up to 20 years.
The amount of money collected will be deducted from the death insurance reimbursements from the retirement dates of the policyholders. If the returns from the investment of the premiums paid on the death insurance policies are high, the holders will get more than 5 percent for living expenses.
Shinhan Life Insurance Co. saw sales of its new third-generation lifetime annuity insurance product reach 67,782 cases as of Dec. 30 last year, creating a storm in the industry.
The new life insurance product prepays the annuity payment against the death insurance annuity as collaterals, the company said.
This time, the life insurance firm said it will introduce in the market “Shinhan THE Gentle Pre-payable Life-Time Insurance” product with the premium amount reduced by as much as 25 percent compared to the existing life-time annuity insurance products, the company said on Jan. 4.
A special feature of the product is that it reflects the scheduled termination rate of the premium calculation to lower the premium. The termination repayment money is lower during the premium payment period, but it will be the same when the termination is completed with the repayment amounting to as much as 30 percent.
If the premium is calculated the same as the existing similar lifetime insurance products, the admission payment would increase as much as 22 percent and give the policyholder a longer guarantee.
For example, if a 40-year-old man buys a lifetime insurance policy paying a 280,000 won monthly premium, he would get 100 million won after his death according to existing life insurance products, but had he bought the low termination repayment 50 percent-type, he would get 122 million, 22 million won more than he would on existing lifetime life insurance products.
The Shinhan “THE Gentle Annuity Pre-payable Life-Time Insurance” product comes in price ranges, including two low-termination repayment types of 50 percent and 70 percent, and the general type with a 100 percent termination repayment.
The premium is the lowest for the 50 percent type. The lifetime insurance product also has a function for the prepayment of the death insurance money, as the collateral so that customers can balance assets at the time of death and the annuity assets.
Shinhan Life Insurance is making preparations for the retirement market, which is growing rapidly due to the aging population, and making an entry into the pension society.
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