Posted June. 25, 2015 08:19,
Shinhan Life Insurance has opened a branch office in Vietnam as the first step of its advancement into foreign insurance markets.
Shinhan Life Insurance said on Wednesday that the company had an opening ceremony of its local branch office at the Lotte Center in Hanoi, Vietnam. This is the first overseas office of the insurance company. Although Vietnam has a large population of 93 million, the nations insurance subscription rate is mere around 5 percent. The Southeast Asian nation is now emerging as a blue ocean to attract Korean insurance companies as the nation has less strict regulations on the financial sector and demands for insurance is now on the rise according to its economic growth.
Shinhan Life Insurance expects that its advancement in Vietnam can create a synergy effect with Shinhan Bank, which has been operating branches in Vietnam. The bank started operation in Vietnam in 1993 and now has 12 local branches. Shinhan Life Insurance is reportedly reviewing a business model in which the insurance company develops insurance products that fits with local consumers characteristics and sell insurance products through at Shinhan Banks branch offices.
Shinhan Life Insurance will pursue various collaboration projects such as Advancement project of the insurance rates in Vietnam, which is implemented in collaboration with Vietnamese finance ministry and the local insurance development institute, said Shinhan Life Insurance CEO Lee Sung-rak at the opening ceremony.