Mirae Asset increases size of insurance sales subsidiary

Finance

Published: 08 Mar. 2021, 17:19

Mirae Asset increases size of insurance sales subsidiary

Mirae Asset Financial Service CEO Ha Man-deog, third from right, Mirae Asset Life Insurance CEO Byun Jae-sang, fourth from right, and related officials pose for a photo during a ceremony on Monday in Seocho District, southern Seoul. [MIRAE ASSET LIFE INSURANCE]

Mirae Asset Life Insurance transferred its entire sales division to wholly-owned subsidiary Mirae Asset Financial Service on Monday, dramatically increasing the size of the smaller company.

Mirae Asset Financial Service, originally established as a general agency that can sell insurance products offered by multiple insurers in 2014, will be taking charge of all sales for Mirae Asset Life Insurance, while the insurer focuses on developing new products and crafting overall business strategy.

Under the plan, all 3,300 financial consultants who sold insurance at Mirae Asset Life Insurance have been moved to the subsidiary. They started selling insurance products including those offered by insurers other than Mirae Asset Life Insurance from Monday.

Mirae Asset Life Insurance said in a statement its subsidiary will offer the optimal insurance portfolio to consumers by comparing all relevant available products.

The subsidiary has inked partnerships with eight property insurance companies and six life insurance companies. It will expand partnerships over time to offer a broader option to customers.

The subsidiary will be headed by Ha Man-deog, who served as CEO of Mirae Asset Life Insurance for the past 10 years.

Ha, according to the insurer, has been a key figure in the company's growth. He was in charge of pursuing the initial public offering and starting its operations in Vietnam.

Ha vowed to turn the subsidiary into a specialized asset management company in a written statement Monday.

Mirae Asset Financial Service will manage 3,500 financial consultants in total, including the 200 it already had.

The move to separate the sales and insurance development reflects a growing trend in the local insurance market, with competition among sales subsidiaries expected to grow fiercer.

Hanwha Life is preparing to launch a sales-dedicated subsidiary, also as a general agency that can sell insurance products offered by multiple insurers, on April 1. Hanwha Life will focus on insurance development.

The new subsidiary will manage some 540 sales offices, 1,400 employees and 20,000 financial planners.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]