By Kang Seung-woo
In terms of size or profitability in the local life insurance industry, Prudential of Korea (POK) might be just your average firm.
But the Korean arm of U.S.-based global company has something to hold its head high about, as it is leading the pack several rankings that show how the company is an honest and ethical one trusted by customers.
According to the Korea Consumer Agency, insurance policies are financial products which receive the most complaints, mainly because policyholders can be satisfied with their policies or not based on how well life planners are qualified to explain products to customers.
In this respect, POK, headed by CEO James Choi Spackman, is gaining credit from consumers.
The ratio of certified insurance consultants (CIC)s, a certificate given to insurance planners who have received no complaints from customers, posted 34.2 percent in 2010, nearly three times higher than the runner-up who sat at 12.2 percent.
To be eligible for the certificate, a person must have worked with the same insurer for over three years, and achieved a certain amount in average annual sales, with no consumer complaints. Due to the strict conditions, CIC accounts for merely 5.4 percent of the overall agency force.
In addition, when it comes to the proportion of those who maintain the certificate for three straight years, it was a runaway leader with 17.7 percent, while the second-best company remaining at just 2.5 percent.
In order to cement its place as the best life insurer for policyholders, POK set the bar higher this year in terms of “misleading sales.”
Misleading sales mean that an insurer fails to give enough information, or are the absence of written agreements or signatures and usually, insurance products offered over the telephone, internet websites and TV shopping channels are more deceptive than those sold face-to-face.
POK, which logged an industry-leading 0.03 percent in the category last year, is gunning for a zero percent result, meaning none of their contracts are cancelled before maturity.
The company’s bid to achieve the unprecedented goal is attributed to its different sales system.
POK only sells its products through life planners, unlike other companies which sell via bancassurance or TV home shopping.
Each customer receives one-on-one consultation from the agents who provide products based on their personal needs. The insurance products are always customized to suit the specific needs and lifestyles of each individual.
The insurance firm also maintained the top position in customer retention with 84.7 percent.