Coping with turmoil in the Korean life market

Article Abstract:

Majority of life insurance companies in South Korea are insolvent as of Mar 31, 1997. The financial crisis faced by the industry can be attributed to its emphasis on growth which resulted in the neglect of consumer services, business quality and profitability. Foreign-affiliated life insurers, on the other hand, are turning out better financial results than their local counterparts due to the implementation of sound management strategies. Prudential of the US, for example, has opted for professional distribution and financial planning to boost sales, productivity and profitability.

South Korea, Insurance

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Certain employer plans hold risk for agents

Article Abstract:

Reverse split-dollar life insurance plans are riskier for employers because there are no guidelines as to what the tax implications of such a plan would be. Often, insurance agents who sell these plans do not inform employers of this problem, which could lead to litigation. In contrast, conventional split-dollar life insurance plans are less risky because the employer is reimbursed for whatever is put into the plan and the cash value of the policy is backed by collateral.

Management, Economic aspects, Product information, Employer liability, Split-dollar life insurance, Split dollar life insurance

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Compensation plans keeping pace with global market

Article Abstract:

A survey of 11 mutual life insurance companies and five stock life insurance companies found that compensation plans have been changed dramatically in the 1980s and 1990s. Approximately 10 of the companies introduced annual incentive plans in the early 1980s and the remaining companies introduced these plans in the 1990s. Long-term incentive plans were also introduced during this same time period.

Compensation and benefits

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