Hyundai Marine Weathers Economic Downturn
By Kim Jae-won
Staff Reporter
"There will be no failure even if some trials are standing in our way."
This was the life motto of Chung Ju-yung, founder of Hyundai Group, who passed away in March 2001. With this motto in mind, executives and employees of Hyundai Marine & Fire Insurance are seeking to become an industry leader in the post-crisis world.
The insurance industry faces several big issues this year. Analysts predicted that growth potential would decrease as the loss ratio in auto insurance goes up in 2010. The government watchdog is also tightening regulations related to consumer protection.
However, Hyundai vows to overcome such difficulties and keep consumers satisfied.
Hyundai is proud of its quick service. The insurer has run its own customer center titled "Hi-VOC' since 2005. The center accepts complaints filed by customers as well as employees through its call center and Web site, as well as in person. The representatives from the center promise to respond to complaints within 24 hours.
For serious and complicated issues, executives meet and comprise a strategy to find a solution.
Hyundai also holds "Day of Consumer." One day every month, employees visit customers, listen to their requests and apply them to their management strategy.
From Learner to Leader
Hyundai opened its first overseas office thirty years ago, to learn advanced business strategies. Now, the insurer wants to expand its size as well as the regions it operates in to leap forward as a global leader.
Established in July 1979, its representative office in London has collected information on world class products and financial market trends from the Lloyd's underwriters who have led the world insurance industry with a long history and tradition.
Hyundai established its U.S. branch in February 1994, and has offered a variety of advanced insurance products. It has also provided reliable insurance services to Korean enterprises operating in the U.S., while learning advanced services and techniques from the U.S. market. In September 2006, Hyundai opened an investment company in the U.S. to gain advanced investment know-how and ensure a more specialized asset management service.
Hyundai also moved into emerging Asian markets. It opened its Ho Chi Minh Office in Vietnam in March 1997 to provide insurance services to local Korean enterprises in the South East Asian region. The office has built close relationships with major local insurers like Bao Viet and Bao Minh.
As China has emerged as a crucial market with a huge number of potential customers, Hyundai opened its Beijing office in August 1997 and has steadily secured business bases for further growth. As a result, the company established a local subsidiary in Beijing in March 2007 and an office in Shanghai in February 2009 to serve the central and southern part of the country.
Stable Growth
Hyundai's assets under management have increased gradually. They reached 8.4 trillion won in January, up 12 percent from March 2009, when the 2008 fiscal year ended.
Net profit also rebounded despite the economic downturn. It dropped to 115.1 billion won in March 2009, but reached 146.5 billion won in January, up 27.3 percent from 10 months ago.
Hyundai posted 18.8 percent in its return-on-equity (ROE) in January showing the insurer's strong profitability. The firm also said that its solvency margin ratio surpassed 200 percent, the international standard of financial soundness, and was at 203.8 percent at the time.