Kyobo Life Insurance Co. led the life insurance industry in Korea for the past 60 years after wisely overcoming a number of crises, including the foreign exchange and global financial crises. At the center of its strategy were reforms on management and internal growth.
Moody’s gave the life insurer the highest credit rating in the financial industry in Korea for its stable profit generation and improved financial health three years in a row since 2015. Kyobo Life’s outstanding achievements in key areas of its operation, including customer satisfaction, productivity and profitability, have been widely recognized to lead the life insurance industry.
The company’s RBC, showing good financial health, stood at 241.7 percent as of June 30, a sign of continuous financial stability. Its ROE continues to be at the top of the major life insurance firms since 2004.
The life insurance firm also continues to stay a top the customer guarantee sector, the key element for the life insurance firms operation. The company declared its Vision 2020 last year to be the No. 1 life insurance firm in the reform of products and channels.
Chairman Shin Chang-jae announced the new vision for the company at the insurance firm’s Kyobo Life Training Institute in front of some 1,000 of the its officers and staff, taking around 50 minutes to explain the details. The plan calls for the company to be the best life insurance firm in Korea in the next five years.
Chairman Shin took over from his late father, who founded Kyobo Life Insurance Co. in 1996. The new vision is the third, following ones he announced in 2001 and 2011. He used various video clips to explain the key points of the new vision to make the session more interesting. Shin projected that this year would see fast changes in the operational environment, with tight regulations on the development of life insurance products and prices to be eased almost completely, so that the survival of a life insurance firm would depend on how fast and effective their reforms would be made to cope with the changing operational environment.
He also warned that they cannot depend on only the product development unit for better life insurance products, but all officers and staff should rack their brains to come forward with ideas to develop better life insurance products.
At the end of his speech, he quoted an old Chinese saying: “Only those who will do their best with the most sincere attitude can change the world.”
Chairman Shin has always taken such wise words the visions very seriously as a business owner.
Shin started holding sessions to explain the visions in 2001, which was a very hard year for Kyobo Life, as it lost around 2.4 trillion won that year due to the foreign exchange crisis, putting the company’s survival at risk.
The chairman came out with a new vision then, which put customers as the top priority for the company.
The chairman followed that up with a new vision in 2011, saying Kyobo Life is the best company when it comes to the protection of its customers by offering better customer service across its operations, from life insurance subscription, maintenance, to making payments, so that its customers would have dependable services from Kyobo Life throughout their entire lives.
Over the past five years, insurance policy planners at Kyobo Life have called on 1.5 million of their customers, and in the process, notified them of an insurance payment that they forgot to claim from Kyobo Life in the amount of 33 billion won. That was a big step in helping the company build relationships with its policy holders, leading to improved operation by boosting the number of the customers who hold the insurance policies for over two years to over 70 percent, up more than 10 percent from five years ago.
As result, Moody’s boosted its credit rating to “A1” the same rate given to such global companies as Goldman Sachs, the Bank of America and Morgan Stanley.