MetLife Taiwan Insurance Co (
The change in strategy would affect a total of 515 sales agents and support staff throughout the country -- nearly half of its work force -- the company, which has a less than 1 percent share of the local life insurance market, said in a press release.
Employees who are being laid off will be offered a better compensation package than what is required under the law, it said.
The insurer, however, refused to disclose details of the severance package, citing confidentiality.
MetLife Taiwan claimed that the rights and interests of its existing policyholders would not be affected.
"We deeply regret that this decision requires the loss of jobs, but it was necessary to position us for long-term business success," said Curt Breckon, president and CEO of MetLife Taiwan.
"We believe that this market has great potential. This change will make MetLife Taiwan stronger by concentrating on distribution channels where MetLife is a leader ... We will do our best to assist them [affected employees] in finding new employment," he added.
MetLife Taiwan has seen its telemarketing and bancassurance sales channels enjoy fast growth over the past few years, said Jack Mong (
Breckon said that the company ranked second in telemarketing and eighth in selling investment-linked insurance policies via banking channels, strengthening the firm's resolve to concentrate on those two business models.
Mong declined to estimate how much personnel expenses the firm would save following the restructuring.
MetLife Taiwan, the 19th largest life insurer in the nation, last year recorded a premium income of NT$9.29 billion (US$283.7 million), accounting for 0.6 percent of the domestic life insurance market.
MetLife Taiwan is the latest example of a string of insurers that have turned to bancassurance in search of business growth.
Bancassurance refers to the distribution of insurance products through a bank's distribution channels, a service designed to fulfill consumers' banking and insurance needs at the same time.
In October, the UK's biggest insurer, Aviva Plc, announced a 50-50 joint venture with First Financial Holding Co (
Shin Kong Life Insurance Co (
Last October, New York Life International, the US' largest mutual insurance company, said it would invest US$20 million in the Bank of Overseas Chinese (華僑銀行) in exchange for a 5 percent shareholding in the local lender to sell insurance policies via its branches.
In early 2004, Prudential Plc announced it would buy a 5 percent stake in E.Sun Financial Holdings (
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS