By Kang Seung-woo
Recently a 31-year-old salaried man who would prefer to be known by only his family name, Ji visited a department store in central Seoul together with his girlfriend.
While his girlfriend was shopping, Ji was consulted by a life planner of a local large insurance company on his expiring car insurance contract, and eventually, he signed up for the insurer’s auto policy.
A growing number of people receive advice and strike deals in some of the least expected places, as insurance companies are employing aggressive marketing methods, no longer settling for just making sales by telephone or relying on home visits. .
In the past, insurance contracts were usually inked when a life planner canvassed homes or offices, but the new trend is being ubiquitous or going to wherever potential customers may be.
According to sources within the insurance industry, insurers have made a foray into unlikely places such as department stores, discount stores, condominiums and apartment complexes to conduct business rather than establishing branches in influential areas or office districts.
Lotte Insurance launched its fifth insurance center at Lotte Department Store at Ilsan, Gyeonggi Province in September. Consumers can receive counseling on their own will there and the premium is cheaper than buying insurance via a life planner. At the center, it offers credit card and capital services as well as insurance.
“We began this project with the intention to offer advice on insurance while consumers are shopping,” an official of Lotte Insurance said.
He said that the firm opened its first unit in one of its department store chains in September 2009 and it has taken advantage of its affiliates specializing in the distribution industry. As of now, Lotte insurance policies are sold in four department stores and one discount store.
Samsung Fire and Marine Insurance has expanded its business to apartment complexes. Its branches feature a reception room, which provides snacks, a seminar room and Internet service. It has opened two branches since July 2010 and plans to open its third unit within this year.
“Although I did not sign up for a policy, I feel comfortable coming here, as they serve coffee and food,” said a visitor to its branch.
“As the insurance industry has been one that consumers cannot access with ease, we are aiming to bridge the gap between them and us,” said an official of Samsung, who is in charge of three branches ― two at apart complexes in Seoul and one at a discount store in Suwon.
Not to be outdone, Korea Life Insurance opened a unit at a resort in Sokcho, Gangwon Province.
After drawing positive reactions to its pilot program during the summer holiday season, it has been transformed into a regular branch with two life planners.
In general, they have drawn favourable feedback from the public and some of them have shown solid numbers in profit.
“Due to its short history, the earnings are not staggeringly high. But there are a soaring number of inquiries and counseling because they now feel less intimidated by insurance to some extent,” the official from Lotte said.
“Some frequently visit us and ask about insurance, while others make use of it as a lounge,” the official from Samsung said.
Dongbu Insurance, which advertises at all outlets of Home Plus in a direct selling format, has made 5 billion won, while AIA Life Insurance has opened two branches at discounters this year.
This kind of marketing strategy is seen as win-win for both sides.
“Opening an insurance arm in the life zone can lure consumers and expose its brand to them,” said an official of the insurance sector.
For customers, a face-to-face consultation can reduce a recently growing ratio of misleading sales.
Misleading sales refer to contracts cancelled by the client due to the insurer’s failure to give enough information, or the absence of a written agreement or signature.
“I am satisfied with the detailed and specific information of the products,” Ji said.
http://www.koreatimes.co.kr/www/news/biz/2010/11/123_76395.html
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An interesting marketing tactic, it’s completely unusual over here in Britain, but from the article it does sound a lot more aggressive and successful in working. People don’t like cold calling, many respond negatively to it, so marketing companies will be looking at other ways of selling their products. This Korean, or some modified version of it could be the next thing we are being pestered by on a Saturday afternoon up town, just look at how charities employ students to harass people in the street, one did it and now it’s trying to get past them is like running down an rugby or NFL pitch with the ball.
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