‘Pioneering Separation of Sales and Product Development’—Mirae Asset Life Insurance’s GA Sees Record-Breaking Revenue in the First Half of the Year

Mirae Asset Financial Services, a subsidiary-type General Agency (GA) of Mirae Asset Life Insurance, has achieved its highest revenue ever in the first half of this year.

Mirae Asset Financial Services, a subsidiary-type General Agency (GA) of Mirae Asset Life Insurance, has achieved its highest revenue ever in the first half of this year. The company has seen consistent growth since the separation of sales and product development in 2021, with a significant increase in revenue, particularly driven by its focus on protection-oriented insurance products and expanding Contractual Service Margin (CSM). This article explores Mirae Asset Financial Services’ performance and future outlook.

Mirae Asset Financial Services, often referred to as the pioneer of the separation of sales and product development, has shown impressive growth following the landmark decision to separate these functions in 2021. According to Mirae Asset Life Insurance's interim report released on the 28th, Mirae Asset Financial Services reported an operating income of 133.4 billion KRW for the first half of this year (January to June), representing a 29.9% increase compared to the 102.7 billion KRW reported in the same period last year. This figure marks the highest revenue ever recorded for a half-year period.

The company’s growth is particularly notable when compared to the 83.8 billion KRW reported in the first half of 2021, which shows a substantial 59.2% increase. Mirae Asset Life Insurance implemented the separation of sales and product development in March 2021, making it the first domestic insurer to move its exclusive insurance planners to Mirae Asset Financial Services, thereby splitting product development from sales activities.

If this trend continues, Mirae Asset Financial Services is projected to achieve annual operating revenues of between 260 to 270 billion KRW this year, setting a new record. The company has consistently increased its annual operating revenue since the first year of separation, recording 189.6 billion KRW in 2021, 204.1 billion KRW in 2022, and 210.1 billion KRW in 2023.

As of December 31 of the previous year, Mirae Asset Financial Services has 3,210 agents operating across 60 branches nationwide. The company plans to support Mirae Asset Life Insurance’s CSM expansion strategy by strengthening its sales force through agent recruitment and enhancements to its sales support system.

Following the introduction of the new insurance accounting standards (IFRS 17) last year, Mirae Asset Life Insurance has been expanding its sales of protection-oriented insurance products through GA channels to secure more favorable CSM. For the first half of this year, the new business CSM of Mirae Asset Life Insurance reached 172.4 billion KRW, a 36.7% increase from 126.1 billion KRW in the same period last year. As of the end of June, the total CSM balance was 2.09 trillion KRW, with protection-oriented insurance CSM accounting for 1.63 trillion KRW, or 77.8% of the total.

A spokesperson for Mirae Asset Life Insurance commented, “The expansion of sales in protection-oriented insurance products, such as health and term insurance, has led to a continuous increase in new business CSM. We will continue to focus on expanding the sale of protection-oriented insurance products through GA channels.”

Mirae Asset Financial Services has achieved remarkable growth following the separation of sales and product development, significantly contributing to Mirae Asset Life Insurance’s strategy of expanding protection-oriented insurance and CSM. With ongoing efforts to strengthen its sales force and enhance support systems, the company is expected to achieve further success. This growth not only represents increased revenue but also enhances the industry’s credibility by providing consumers with a broader range of protection-oriented insurance products.