Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Orange Life spearheads innovation with 'agile' culture
A member of a “squad” at Orange Life Insurance updates other members on the progress of tasks she has assumed in a daily “standup meeting,” at the insurer's headquarters in central Seoul, Nov. 14. / Courtesy of Orange Life Insurance
By Kim Bo-eun
This is the first in a series of articles about firms leading innovative corporate culture in the finance sector, which has been considered one of the most conservative industries. ― ED.
Insurer aims to tackle era of low interest rates with proactive work ethic
By Kim Bo-eun
Orange Life Insurance's office resembles a beehive. This is not only due to the structure of desks, but because of the buzz of its employees who are constantly on the move to get their work done.
At 9 a.m., members of various “squads” gather around their respective boards for their daily 10-minute standup meeting. Each member takes turns updating the team about developments of tasks they have assumed. It is unapparent who the manager is, as the manager also takes part as a member of the squad.
Such dynamism is seen not only among working-level staff, but also through to executive level, including the CEO. This is usually not the case, as at many companies those in managerial positions simply approve and sign documents. Here, the CEO moves about, taking part in daily sessions every week.
This constant engagement is based on what the life insurer has termed “agile organizational culture.”
In April last year, Orange Life changed part of its organization to create multi-functional units. Formerly, the organization had been set up according to function, such as the sales division and marketing division. The new “agile” units include staff of various divisions.
The teams have been created so that they can take charge, from beginning to end of a project, as a means to maximize autonomy. This enables the teams to revise and carry through with plans and procedures quickly and efficiently, in a customer-centered manner. This is because no unnecessary reports are made to superiors.
About half of Orange Life's organization has been structured this way.
The insurer has mostly dissolved its strategy and planning division, so that ideas can come from working-level staff.
“The units have been created to empower employees, maximize autonomy and also take responsibility,” Chun Ji-won, an “agile coach” at the insurer, said.
Preparations began ahead of the then-ING Life's listing in 2017. ING Life changed its name to Orange Life in 2018.
Listed life insurers were struggling amid the persisting low interest rate.
It was then that CEO Cheong Mun-kuk decided that things had to change at the company.
Cheong himself traveled overseas with executives of the firm to benchmark the way leading global companies were working.
He got the main model from ING Bank. ING Bank modified a model developed by Spotify, the Swedish-American media services provider, to make it applicable to a financial firm. Orange Life also customized the model it got to make it right for the life insurer.
Many global companies and local conglomerates regardless of sector have visited Orange Life to learn more about its agile model.
Since the adoption of this new model Orange Life has seen its contract retention rate go up, as the employees of the agile unit in charge of contracts began working more proactively. The figure rose by an average of 2 percentage points three months after the agile system was implemented, according to the company.
The time it takes to release a new insurance policy has also been reduced from about two months to three to four weeks, as the related unit succeeded in eliminating inefficiencies in the process.
“There was a time interest in dementia insurance spiked due to a soap opera. Cutting down the time for a product to get to the market mattered then,” Oh Min, head of agile management, said.
But the effects of the organizational culture should be viewed long-term, she said.
“One aspect is being able to attract and retain talent, as young people will no longer want to work at hierarchical organizations. When they join the company, they will be able to realize that they will be motivated to do their work, in a meaningful and fun manner.”
Oh herself has become a lot busier in recent years, but said she was happy that “even executives could work in an environment in which they could experience growth.”
Orange Life has the highest productivity per employee among the 12 listed insurers as of the third quarter of this year. The insurer's employees generated an average of 270 million won in net profit per person.
“Above all, the organization has become more dynamic and has set up the groundwork to be able to leap to the next level,” Oh said.