AGCS seeks sales of 100 mil. euros in Korea within 5 years
Allianz Global Corporate & Specialty Korea CEO Noh Chang-tae speaks during a press conference at the Four Seasons Hotel in Seoul, Wednesday. / Courtesy of Allianz Global Corporate & Specialty
By Jhoo Dong-chan
Allianz Global Corporate & Specialty (AGCS) aims to achieve sales of 100 million euros within five years in Korea. Believing there is still room for growth in the nation's corporate insurance market, the world's top-tier insurance firm under Allianz Group is expected to take a more aggressive marketing approach to expand its presence here.
Establishing its local unit here in June of last year, AGCS earned 10 million euros in premiums on insurance policies through its corporate insurance services in its first six-month period. AGCS Korea Branch CEO Noh Chang-tae said the company will continue its momentum with its insurance service for recalls on products this year.
“An increasing number of Korean firms now have to meet tougher customer standards and environmental regulations,” Noh said during a press conference at the Four Seasons Hotel in Seoul, Wednesday.
“More companies are being ordered to carry out product recalls every year. AGCS is now offering its corporate insurance services with about 100 Korean firms. Of them, however, less than 10 companies have so far bought the corporate recall insurance.”
Noh admitted the Korea branch has yet to turn a profit, but is confident the company will find a turnaround soon.
“It is not easy for a firm to post a net profit so soon after it is established. I believe we turn things around within three years, considering the nation's promising recall insurance market,” he said.
Product recalls are on the rise in Asia, reflecting an eastward shift in global supply chains.
“Product recalls have risen steadily in the past decade. We are seeing record levels of recall activity in size and costs today,” said Alfred Shum, regional head of Asia-Pacific crisis management at AGCS. “Tougher regulations and harsher penalties, the rise of large multinational corporations and complex global supply chains, plus growing consumer awareness, impact of economic pressures in R&D and production and even growth of social media are just some of the contributing factors behind this.”