KoreaToday Life insurers turning to social contribution

By Kang Seung-woo

Staff reporter

Life insurance companies here have been in a cutthroat competition to garner more of a market share by using aggressive marketing strategies, now that the local insurance market is creeping closer to saturation.

But behind the scenes, another competition is going on as many insurers are trying to attract customers by actively engaging in corporate social responsibility (CSR) programs, giving back part of their earnings to the community.

Each company is using social contribution as a stepping stone by engaging in various public services and volunteer works to achieve durable development.

“Insurance is a business that provides a helping hand in times of difficulty. In this respect, insurers’ CSR activities, such as donating and volunteering, stays true to the definition of insurance,” said an official of a civic organization.

“Social contribution has been an essential element, not a fad, en route to sustainable growth.”

According to the Korea Life Insurance Association, life insurers here are running their own programs as well as participating in joint programs related to making social contributions.

In November 2007, life insurance companies jointly established the Life Insurance Philanthropy Foundation, promising to raise 1.5 trillion won to contribute to the community over the next 20 years.

The foundation donated 1.9 billion won to patients suffering from rare diseases and 860 million won to low-income senior citizens suffering from dementia in its first year.

The association also donated 1 billion won to an anti-suicide campaign, and 470 million won to solving the problem of the low birth rate here and providing medical treatment to premature babies.

In May, it awarded scholarships worth roughly 800 million won to 642 high school and university students and plans to continue supporting students, including those who study overseas.

All these types of charity work seem to meet customers’ expectations.

According to a survey by the Korea Insurance Research Institute, 86.2 percent of consumers said insurance businesses need to conduct more social contribution activities that fulfill CSR. Two out of three said they would consider the company's social contribution activities when buying an insurance policy.

As insurance firms offer services to customers based on trust, they benefit from those programs in gaining this trust of customers.