Bae Seung Jun, Shinhan Life Vietnam's General Director

2023 was the year of many difficulties, challenges for the Vietnamese life insurance industry. One encouraging development in the market, nevertheless, was the strengthening of the legal framework and the introduction of new rules aimed at regulating the industry towards enhancing quality and ensuring sustainable growth. The industry is predicted to resume growing in 2024 and is transforming positively.

On the occasion that Shinhan Life has launched the financial consultant channel (FC Channel), Shinhan Life Vietnam's General Director, Bae Seung Jun, spoke with Việt Nam News about the market’s prospects and his company’s business plan.

After a difficult year, Việt Nam's life insurance industry has set a growth target of 5 per cent for 2024. How do you evaluate this goal in light of the ongoing economic challenges?

In 2024, international organisations anticipate that the Vietnamese Government's swift and efficient actions would result in a resilient economic recovery, even in the face of persistent global economic issues that may negatively influence the country's economy and the insurance industry. This promises a brighter outlook for the country.

I really value the goal of pushing the life insurance industry’s growth to increase by 5 per cent in 2024, especially in light of the current economic climate, market conditions and prospects.

Although this goal is undoubtedly difficult, it shows how determined the industry leadership is. However, it is anticipated that last year's significant regulatory changes and the adoption of new regulations will favourably influence the market's trajectory, especially in the second half of this year.

With regulatory bodies' strategic efforts and companies' vigorous engagement in enhancing advisory quality and delivering products that genuinely meet customer needs, I believe the market is well positioned to rebuild consumer trust. This, in turn, will rejuvenate growth, paving the way to achieving the ambitious 5 per cent growth target.

Shinhan Life has launched the FC channel. Is this a step the company is taking to enhance consultancy? What are the company's expectations for this channel?

Customers' benefits have always being the top focus of the market, therefore insurance companies need to develop a portfolio of products that better meet the needs of their customers while simultaneously improving their sales staff, procedures and customer services.

Due to the complexity of insurance products, there is always a need for direct consultation from agents so that customers can better understand their own needs as well as the features of the products. Therefore, I see that the agency channel remains an important channel both now and in the future.

At Shinhan Life Korea, the financial consultant (FC) channel is a mainstay, yielding high profits and contributing to the company's sustainable development. We plan to benchmark this successful model for the company's FC channel, building a professional and high-quality FC team, thereby enhancing the quality of consultation for Vietnamese customers.

From its humble start in 2022, we have rapidly expanded to over 100 employees and 200 consultants. With an impressive premium revenue of VNĐ217 billion (US$8.9 million) in 2023, representing a year-on-year growth rate of 90 per cent, we became the only insurance company to achieve such a high growth rate.

We firmly believe that the life insurance market will soon recover and continue to thrive, and the FC channel is an opportunity for us to mark a new phase of growth.

At the FC channel launching event, Bae Seung Jun - General Director of Shinhan Life Vietnam shared about Company's direction and strategy in 2024. — Photo Courtesy Shinhan Life Vietnam

Improving insurance consultancy is an immediate requirement by the Government. What are the core values and features of the FC channel?

After a period of rapid quantitative growth, the Vietnamese life insurance market is currently undergoing a significant qualitative transformation, aiming to enhance the core human values of insurance. Consultants play an incredibly vital role in promoting insurance's fundamental purpose of providing risk protection for people.

I am confident that customers feel secure with the most suitable financial solution only when thoroughly advised by a team of qualified financial consultants and a clear understanding of insurance products. Therefore, the true value of life insurance will be promoted, instilling confidence in the humane values of insurance. Only when people understand and trust the core human values of insurance can there be a significant increase in participation in life insurance.

Therefore, we will not prioritise quantitative expansion, but focus on enhancing quality, with the goal of recruiting and training a professional and well-grounded team. ‘Quality’ must become a keyword synonymous with Shinhan Life Vietnam, embodying the company's vision of ‘Enhance the Quality of Life through Innovation.’

With only 11 per cent of Vietnamese individuals currently owning life insurance, there is considerable room for growth. The Government aims for 15 per cent of the population to having life insurance by 2025 and 18 per cent by 2030. What should life insurers do to expand the market, and what are Shinhan Life’s strategies for capturing a larger market share?

As I previously said, insurers, including Shinhan Life, have made significant adjustments over the past year to address new requirements in the industry. Beyond developing product lines that better meet the real needs of customers, simplifying the insurance enrollment and claim procedures and diversifying distribution channels, there has been a special emphasis on improving the quality of the consulting and sales teams.

To support the company's growth in the current landscape, Shinhan Life will leverage both unique selling proposition (USP) and emotional selling proposition (ESP) to create a distinctive brand identity in the market.

The USP is exemplified by the integrated strength of the Shinhan Financial Group in Việt Nam – One Shinhan synergy, and through the transfer of expertise from Shinhan Life Korea's experience. I believe that very few companies in the market possess or can replicate this element.

The ESP is manifested through an outstanding sales team and dedicated after-sales service. To forge a positive image in the eyes of agency candidates and customers, we commit to quality and refuse to compromise on quality for any reason.

We anticipate that with a strategy focused on quality and prioritising customer benefits, the financial solutions of Shinhan Life will increasingly be trusted and chosen by the Vietnamese people, thereby helping the company achieve its goals and contribute to the overall growth of the market.

As a new player in the insurance market, what are Shinhan Life's short- and long-term targets in the Vietnamese market, and what actions has it taken to achieve these goals?

Leveraging its solid foundation from the first two years, Shinhan Life is set to diversify its distribution network, roll out its innovative products, and promote the quality to broaden its access to customers and solidify its presence in the market.

The launch of the FC channel marks a pivotal move towards high-quality and effective distribution, enabling us to provide the most accurate financial solutions for a larger number of customers. I hope this strategy will significantly propel Shinhan Life Vietnam's growth in the coming years.

We are striving to make quality become a keyword that represents Shinhan Life Vietnam. Our goal is to make sure that clients identify Shinhan Life Vietnam as a professional insurance provider that puts client needs first, has an effective operational structure, and uses top-notch distribution channels. — VNS