As the life insurance market contracts, Samsung Life Insurance is the only major insurer to increase its new contract volume. The company is strengthening its position among the leaders by expanding sales of pension insurance through bancassurance.
According to the insurance industry on August 6, the cumulative amount of new personal insurance contracts from 22 life insurance companies reached 74.55 trillion won as of May this year, a decrease of 7.2% (5.77 trillion won) compared to the same period last year (80.32 trillion won). The number of new contracts also fell from 5,228,624 to 4,817,076, a decline of 7.9%.
Despite the downturn in the life insurance market, Samsung Life recorded a cumulative new contract amount of 11.30 trillion won as of May this year, an increase of 8.9% (924.3 billion won) from 10.38 trillion won a year earlier. This marks the only growth among the top three life insurers. In contrast, Hanwha Life and Kyobo Life saw their new contract amounts decrease by 3% (281.9 billion won) and 16% (1.41 trillion won), respectively.
The increase in Samsung Life's new contracts was driven by savings insurance. The cumulative new contract amount for savings insurance rose from 1.07 trillion won in May last year to 1.89 trillion won this year, an increase of 819.7 billion won (76.4%). This accounts for 88.7% of the total increase in new contracts of 924.3 billion won. The expansion of sales through bancassurance channels, including pension insurance, is believed to have contributed to this growth.
In fact, the cumulative first-year premiums for pension insurance at Samsung Life reached 1.21 trillion won as of May this year, a staggering increase of 142.9% compared to 499.2 billion won during the same period last year. While sales of pension insurance through bancassurance were sluggish last year, the changing interest rate environment in the first half of this year has enhanced product competitiveness, leading to increased sales.
The gap with NH Nonghyup Life, which had a large volume of new contracts due to policy insurance sales targeting farmers at the beginning of the year, has also narrowed quickly. The difference in cumulative new contract amounts between the two companies was 3.47 trillion won last May, but it has shrunk to just 900 million won this May. NH Nonghyup Life is undergoing a restructuring focused on long-term products with high insurance contract margins (CSM), resulting in a downward trend in new contract volumes.
An industry insider stated, “Bancassurance has a high proportion of lump-sum payments, making it a stable means for insurance companies to secure funds. Each insurer adjusts its channel strategy as needed, and this year, Samsung Life appears to be actively expanding its bancassurance sales.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.