Fubon Life Insurance Co (富邦人壽) yesterday said that it faces challenges this year, including financial technology development, spillover insurance marketing and online insurance product design, although foreign-exchange volatility is likely to ease as the US Federal Reserve turns dovish.
The company’s net profit fell 21.9 percent to NT$25.22 billion (US$819.3 million) last year, from NT$32.32 billion in 2017, as its hedging costs increased and it lost NT$5.56 billion due to global equity volatility in December.
“We did see some situations last year and are concerned about those reoccurring this year,” Fubon Life president Benson Chen (陳俊伴) told a media gathering, adding that it is difficult to forecast this year’s sales and profit.
Fubon Life topped the nation’s online insurance business for the second consecutive year last year, reporting NT$650 million in total income, followed by Cathay Life Insurance Co (國泰人壽) and Taiwan Life Insurance Co (台灣人壽保險), Chen said.
As the firm’s advantage over its rivals was not significant enough, Chen said Fubon Life aims to design special online products different from its conventional products and would demand its sales agents be more aggressive.
Last year, the most popular online insurance products were annuity policies, which generated income of NT$600 million, with the average policy price between NT$180,000 and NT$200,000.
Fubon Life launched spillover insurance products for diabetics in October last year, which encouraged clients to improve their health in return for a smaller premium or a bonus. The company sold 100 such product by of the end of last year.
In light of a high staff turnover rate, Fubon Life plans to recruit 6,000 sales agents this year, executive vice president Sueiue Chen (陳世岳) said.
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