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Sunday, 21 June 2015

KorEconomics 101 (한국경제학개론), Part XV: KDB Life Insurance - a subsidiary of Korea Development Bank


KDB Life Insurance (Hangul/Hanja/Romanization: KDB생명보험/KDB生命保險/KDB Saengmyeong Boheom) is a Korean insurance company which served as a subsidiary of Korea Development Bank. The headquarters of KDB Life is located at KDB Life Insurance Tower - 372 Han River Boulevard/Hangang-daero, Dongja-dong 45-beonji, Seoul Yongsan-gu.

The company was founded in 1973 as Donghae Life Insurance with net capital of 1 billion won. It changed its name into Dong-A Life Insurance in 1983. In 2000, Dong-A Life Insurance merged with Kumho Life Insurance, a company under Asiana Group under Kumho Life banner. Kumho Life was previously known as Kwangju Life Insurance in 1988 and Aju Life Insurance in 1993. In June 2010, Kumho Life Insurance changed its name into KDB Life Insurance and the ownership of the company was transferred to KDB Financial Group, the parent company of Korea Development Bank.

KDB Life Insurance Co., Ltd. provides life insurance solutions to individuals, and public and private companies in South Korea. The company also offers accident, sickness, and annuity insurance solutions. It also handles government and municipal bonds, as well as stocks; leasing properties and facilities; discounting bills; and providing consulting services. 

Based on Korea Economic Daily (한국경제/韓國經濟/Hankook Kyungje) Financial Watch in May 2015, KDB Life took in the largest amount of premium income of 320 million won. The biggest advantage of online insurance is lower premium, typically 20-30 percent cheaper than comparable life insurance policies sold through conventional channels as it cuts out the middleman. Online life insurance is also low in cancellation rate. For example, the rate of life insurance policies that maintain their account by the 13th month was 94 percent for Kyobo LifePlanet.

For KDB Life, whose share of online contract is highest in the industry, the daily average number of new online policies in March 2015 was as high as 350. Even for Lifenet, Japan's largest online life insurer, the number was only 300.