[Korea gimmingyeong financial newspaper reporter] 'savings insurance renaissance' that led to the end of last year, attributed mostly life insurers eye protection-type insurance. In addition to the prolonged low interest rates as a negative margin of insurers bigger concern because jyeotgi a faster pace as compared IFRS17 (New International Financial Reporting Standards) introduced in 2021. Insurers are dolryeojwoya put up interest at maturity are invested premiums entrusted by the customer.
Recently, however, as some domestic bond yields declined last for years even hit the floor deongdalah asset investment yield. This came to sell high-interest savings determinate insurance insurers were exposed to the negative margin risk.
IFRS17 2021 ahead of the introduction is also a burden on insurers. When IFRS17 is performed liabilities of the insurer (insurance payable) evaluation methods are as changes to the market in the current cost total, including a type of △ contract services margin △ risk-adjusted △ save △ future cash flows, taking into account the time value of money for future benefits 4 It is broken down into categories.
The interest rate to reflect the time of registering to calculate liabilities under insurance and so increase the burden. Shem finally losing equity accounting is not bound to the debt of the insurer increased dramatically. The fire insurers fell on the foot are the constitutional improved protection-type insurance, reducing the savings ratio kkoehamyeo embarked on fundamental changes. Listed are each one reduced dividends and recapitalization plan in a variety of ways, such as capital increase, subordinated debt or hybrid securities issued.
◇ 'dinosaur insurers' doorstep group savings insurance Station offensive unfolded
But doorstep Group entered the insurance market in Korea were opposed to the actual power savings insurance product offensive it is in full swing at the station. Tong Yang Life Insurance recorded a 11.3 billion won last month, monthly payment and initial premiums rose leap jump up the life insurance industry. 5. The record of the 11.4 billion won ranked 4 NH NH life and also being maengchugyeok reduce the gap.
Angin Allianz Life products last year doorstep Group also joined the high interest savings insurance sales since the beginning of the year. Allianz Life has accentuated this happening to stop selling brew in a day, while the subscriber is rapidly Morley launched the 'Et Bonus up to savings insurance "in January offline-only product. Allianz Life official said "will you stop the channel sales target one month the GA fill in a day," said "for sale to other channels such as online and Banca channels."
Allianz Life is the life insurance industry rose over 8 Reap 7.4 billion won last month, initial premiums monthly payment. Such business strategy is similar to the move the master bedroom Insurance seen in the Chinese market. This argument is to focus on the big savings insurance premiums amount to selling the petite called the initial insurer. Insurance industry officials analyzed that "because of the high proportion of ilsinap savings insurance", "initial premiums are typically savings-type insurance sales increased more sharply," said.
Last month, thanks to the high performance Power Tong Yang Life has confirmed the expected rate of type coupon rate of 2.9% a year to two months for life insurance. The Samsung and Kyobo Life, Hanwha value is higher than the 2.5% rate expected to Mine. The lower the interest rate is expected to be assuming a rate of return that can be operated to achieve the insurance premiums received from customers is expensive. Tong Yang Life Insurance was added to give a coupon rate of 2.9% here. No matter how low interest rates will also jugetdaneun paste the annual 2.9% in the insurance reserves are paid by the customer welfare.
Such a pace of Tong Yang Life Insurance industry has predicted that going after the high-yield fixed interest type sell hagetdaneun take market expansion strategies through high interest deals.
Allianz Life is also re-released as a savings insurance product which stopped selling since September 2015 started to grow adult.
"It gives up bonus savings insurance" for released earlier this year, Allianz Life is the industry's highest level of disclosure to the annual 2.6% rate. Also it found that most of the savings insurance products of the insurer released this year by 2% minimum guaranteed interest rate. Insurance industry officials said the pace of such analysis Tong Yang Life Allianz Life, said, "increases the income and savings insurance premiums will grow is a petite'll benefit from the asset management" that "management style typical of China's insurance doorstep."
◇ 'high-risk' investments Immortal's financial soundness chopping up
The industry is already saturated, and visiting is a Korea insurance market interest rates, the risk of slower growth pace of workable response to the crisis across such a dominant insurance doorstep. The lower asset investment yield due to low interest rates and the financial health reasons.
Last year assets under management of Allianz Life margin declined 4.58% to 3.98% over the previous year. Tong Yang also declined compared to the previous year 4.33% 2.53% last year. Life, particularly the Orient was also view a loss of 266.2 billion won embroiled in the master bedroom underwriting mortgage loans since the end of last year, increasing ODA meat sold assets to savings insurance fraud. In the meantime, the industry is predicted that Dongyang life as a Ko Suik, high-risk venture investment with negative margin due to concerns that has the right to sell insurance and savings unusual 'negative' petite insurance for.
Asset yields can be sustained at no more than 4 percent to a situation without such an aggressive move when the Oriental Life and Allianz Life itneunjineun is unknown. When a customer has paid premiums due to higher interest rates, but to put dolryeojwoya is because difficult to find a suitable investment that can achieve the desired yield a global trend prolonged low interest rates. According to the financial oriental life it is reportedly enlarged the other mortgage products to make up for it. Other loans include mortgage loans, including meat that is the last issue included the aquatic mortgage loans.
According to the insurance industry last October, based on loans and other cases of oriental life appeared to 2.0402 trillion won. This is more money than the Samsung, Hanwha, including Kyobo sum of the big three life insurers (100,003,761 million) in value, accounting for a whopping 20.40% of the total life insurance industry and other loans (10 billion). Delinquency has also exceeded the average score for the domestic life insurance companies 1.09% as of the end of last year, 17.45%.
Other items include a mortgage insurance policy, real estate, credit, loans for meat, seafood loans, personal property loans, such as social overhead capital (SOC), project finance (PF) is available. Other mortgage insurers in that it is a government bond yields have never affects less than 3% of safe assets, mainly investment loans can be an attractive alternative investment. But inevitably it risks even greater as higher interest rates.
However, Tong Yang Life is greatly concerned about this level is not announced. Tong Yang Life Insurance said, "the amount of 200 million of other loans are slightly inflated by the sum of the meat mortgage cases surfaced last year," he said.
Also, "If the garden of mortgage loans are concerned in the corner there is such current timber and fisheries, which account for a low percentage around 5% of total" and "Other is the including project financing (PF) and social overhead capital (SOC) foreign bonds while matching the side and focus on risk hedging, "he said. As part of the risk management Tong Yang Life Insurance it was also recently suspended the recruitment of interim products' CSS policyholders credit. Internally, the reason why it was changing the asset management policy based on the default rate is high.
Depending on despite these efforts, not otherwise have an alternative investment in the industry had expected such a move oriental life not lived. Industry insiders "high-yield products which sell oriental life, and Allianz Life seems aimed at short-term results," predicts a "IFRS17 when introducing these top-line growth strategies will not last long."
Etc. ◇ piggyback "China Money" Only free only
The voices come to dispel the concern that the capital of Eastern Life and Allianz Life Station Offensive 'doorstep after the Chinese group. Master bedroom Insurance Recent 528.3 billion won in Tong Yang Life Insurance, Allianz Life has shuffled a capital increase of 218 billion won. Just a few months after it was put into funds of nearly one trillion won to Korea within two companies.
Tong Yang Life Insurance was able to raise capital, boosting approximately 52.5% p for these 'blood transfusion', thanks to the end of last year, stayed solvency (RBC) ratio 182.0% 234.5% on the doorstep insurance cases largely qualitative.
The Tong Yang Life official said, "capital increase" reflects one-off factors, according to Meat mortgages damage occurred in December last year since its establishment, including the maximum profit achieved a year miruge dwaetjiman a significant increase in protection-type monthly payment initial premium business base has become even harder. " will embark on a new leap forward based on the robust financial structure in accordance with, "he said.
Allianz Life also said that determine the capital increase of 218 billion won scale shareholders in the way the Council last month.
Through this capital increase Allianz Life are expected to increase further attract capital and financial soundness. Allianz Life has grown two hundred million won 170 in the previous year loss of a net loss of 253.3 billion won last year a consolidated basis. Officials predicted that the initial premium is reduced for it to be the biggest cause of the increase in policy reserves of the insurance liability adequacy test. Financial soundness indicators to assess the RBC ratio and also score lower than the life insurance industry average of 297.1% to 196.04% of last year in September criteria.
Through the subsequent rights offering doorstep Group raised the capital and financial soundness of Eastern Life and Allianz Life. At the same time, master bedroom with insurance increased shareholder ownership is expected to be pitching to enhanced responsible management of these insurers.
Financial authorities ahead of the introduction IFRS17 emphasis on ensuring the financial soundness of insurance companies are also showing concern about the appearance of aggressive moves and Allianz Life Insurance doorstep. But officials assess that "it shows confidence in securing financial stability through funding from the master bedroom group plans difficult to regulate," he said, "It is the year of granularity Asset Management Portfolio issue three, which manages the interest rate risk systematically seems." .
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