contents
2010 - 2011
Key performance indicators
00
2011 highlights
02
Message from the CEO
04
Company profile
06
brand value
08
Corporate governance
10
Ethical management
12
Stakeholder communication
14
Materiality analysis
16
Stakeholder interviews
18
Business
20
1.1 Sustaining growth through innovation
22
1.2 Improving financial performance
24
1.3 Strengthening risk management to protect customers
28
and corporate values
Samsung Life Insurance Sustainability Report
#55, Sejong Street (Taepyeongno 2-ga), Junggo, Seoul, SAMSUNG LIFE INSURANCE
www.samsunglife.com
2010-2011 Samsung Life Insurance
Sustainability Report
CustomerS
30
2.1 Customer Care Management to enhance values
32
2.2 Going beyond customer satisfaction
36
EMPLOYEES & financial consultants 38
3.1 Promoting diversity
40
3.2 Achieving sustainable growth through
41
competitive compensation
3.3 Building a great workplace
43
3.4 Labor Management relations
45
Corporate Social Responsibility
46
4.1 Social contribution programs
48
4.2 Philanthropic education for future generations
50
4.3 Community engagement for the underprivileged
52
4.4 Culture and sports sponsorships
55
environment
56
5.1 Green management overview
58
5.2 Green financial products
60
5.3 Green management activities
61
5.4 Green management performance
63
Appendix
65
Financial statements summary
66
Awards and recognitions
70
Third party assurance statement
72
GRI declaration
74
GRI G3.1 index
75
Glossary
79
Memberships
80
Key Performance Indicators
This sustainability report has been certified by the
Stakeholder
group
Management
Risks/Opportunities
Forest Stewardship Council (FSC), which promotes
Performance
Indexes
environmentally appropriate, socially beneficial and
906
1,925
112.4 ▲
forests. This report was printed with the use of soybean
Invested asset profit percentage (%)
5.5
6.4
16.4 ▲
oil, which reduces air pollution by minimizing toxic
15.3
23.2
51.6 ▲
emissions in the printing process.
RBC ratio (%)
280.4
332.0
18.4 ▲
Right selling rate (%)
99.57
99.68
0.1 ▲
New business
Trust account total assets
196.8
310.4
57.7 ▲
• Growing needs for global management and diversified sources of revenue
opportunities
(KRW billion)
• Customers are the very reason for Samsung Life’s existence
Customer satisfaction
National Customer Satisfaction Index
1
1
-
0
0
-
4.40
4.46
1.4 ▲
8,574
8,825
2.9 ▲
Operating ROE (%)
• Seek new business opportunities through the Retirement Research Center,
Risk management
Insurance & Finance Research Center and joint ventures in China and
Thailand
(NCSI) (rank)
• Inadequate customer service can lead to negative operational results
• Increase the importance of protecting customer information
• Eliminate forced labor in compliance with the Korea Labor Standards Act
Customer information
Individual information protection
protection
violation or customer data loss (cases)
Employment & diversity
Percentage of female managers to total
for more than 10 years (persons)
employees and financial consultants • Provide a healthy work and life balance through competitive fringe benefits
channel with our stakeholders, keeping everyone
• Respond to local needs for social contribution activities to improve
No. of training hours per person (hours)
134
142
6.0 ▲
Employee benefits & safety
Rate of return after maternity leave (%)
93.4
93.7
0.3 ▲
Social contribution
No. of volunteer hours per person (hours)
7.36
7.39
0.4 ▲
Value of social contribution
610
620
1.6 ▲
corporate values
performance, as well as our future plans. It will also
serve as a medium to reflect stakeholder opinions on
모바일 홈_지속경영가능보고서
Career development
(KRW 100 million)
• Separates the financial business from the general public due to the
our business activities.
코드URL : http://durl.me/qddbr
링크URL : http://m.samsunglife.com/main.jsp
CSR 박상호차장님
-
Reporting Period
Visit our website at
- Samsung Life’s fiscal year was from April 1, 2010 to
http://www.samsunglife.com/company_en/submain.html
complexity and diversity of financial services
- In some cases, data from the past three years was
also included to highlight certain trends.
CSR 박상호차장님
Commitment to green investment
Green finance
• Expand investments into green industries
Greenhouse gas reduction
Energy conservation
participation
2,374
5.7 ▲
7,757 3)
7,870 3)
1.5 ▲
-
(KRW 100 million)
• Convert worksites and office buildings into eco-friendly buildings
• Establish green management infrastructure and encourage employee
2,246
Greenhouse gas emissions (tCO2e)
Volume of energy use at head office
144,598.6
144,324.2
To see a copy of our annual report, visit our website at
http://www.samsunglife.com/company_en/ir/finance_ar.html
-0.2 ▼
building (total energy) (GJ)
Total volume of paper use (ton)
1,749.9
1,159.7
-33.8 ▼
reduction
Total volume of water use (ton)
78,884
65,037
-17.6 ▼
- Global headquarters, domestic branch network and
overseas subsidiaries, branches and representative
- Some environmental data covers only the activities
코드URL : http://durl.me/qddfd
링크URL : http://www.samsunglifeblogs.com/
at domestic places of business due to data collection
CSR 박상호차장님
-
1) Managers and leaders (branch managers and regional headquarter directors included)
2) Scope of environmental data: headquarters (greenhouse gas emissions, energy use, water use), company-wide (paper and water use)
3) GHG emissions increased in 2010 due to increased gas expense subsidies to employees.
Reporting Scope
offices
블로그_지속경영가능보고서
Paper & water use
March 31, 2011
- Some qualitative data coverage extends up to the
second half of 2011.
PC홈 연차보고서_지속경영가능보고서
코드URL : http://durl.me/qddj3
링크URL : http://www.samsunglife.com/company/ir/finance_ar.html
• Increase demands for financial inclusion
Environment
report. We intend to use this report as a communication
abreast of our sustainability management and
No. of financial consultants serving
• Offer diversified educational and career development programs for
2)
This is Samsung Life Insurance’s first sustainability
female workers 1) (%)
and ILO Conventions
Local
communities
Change (%)
Net income (KRW billion)
Financial
a first in Korea
Employees
& financial
consultants
2010
economically viable management of the world’s
• Aging society and investors prefer tangible assets over financial assets
• Prepare Business Continuity Planning (BCP) and receive BSI certification,
Customers
2009
Visit our blog at
www.samsunglifeblogs.com
issues.
Reporting Standards
This report was compiled in line with the Global
Reporting Initiative (GRI) G3.1 Guidelines and the
트위터_지속가능보고서
Financial Services Sector Supplement (pages 75 to 78).
코드URL : http://durl.me/qddhe
링크URL : https://twitter.com/#!/samsunglife
CSR 박상호차장님
-
Future reports
E
The nature of our business lends itself to corporate social
responsibility and customer satisfaction, as well as a
fiduciary duty to protect customer assets. We aspire to one
day integrate our financial and non-financial performances
into one report. The following Key Performance Index (KPI)
represents our first step towards achieving this integration.
F
Finance
These KPI will help us review our achievements against our
mid-term plan, while also checking on the opportunities and
threats we may face in the future and the potential effect they
Annual report
+
Cover story
Follow us on Twitter at
Samsung Life opened the “Love in Us”
twitter.com/samsunglife
Plaza in September 2011 to provide a
Environment
S
G
Society
Corporate
governance
Sustainability report
=
Integrated
thinking
venue for cultural, musical and artistic
Third Party Assurance
This report received third party assurance from the
Korea Productivity Center, an independent assurance
provider (pages 72 to 73).
Contact Information
performances. In the future, we will
Corporate Planning 2 Team, Samsung Life
continue to fully support the arts.
Tel: +82-2-772-6869
e-mail: csr.loveinus@samsung.com
Integrated report
could have on our financial performance.
Designed by Honeycommunications +82-2-325-9889, Printed by Keumgang Printek +82-2-2275-5641
We are proud
to present
our first
sustainability report.
Our customer Care Management captures the essence
of insurance in that it is about caring and protecting
your loved ones from unknown risks.
As a top and leading insurance company in Korea,
we are even more committed to helping individuals build
their valuable assets.
2011 highlights
Samsung Life’s
Creative Innovation
Activities
Embracing change
under new leadership
01
Since his inauguration in December 2010, Vice Chairman Keun-hee
Park has traveled all over the country so that he can hear directly from
those working in the field. After a total of 51 meetings with people at
every level of the company, from Gangwon province in the north to
Jeju Special Self-Governing Province in the south, he has been spearheading a company-wide innovation drive, which will bring about a
more customer-oriented and growth-driven corporate culture.
The following highlights the nine most
prominent aspects of our creative
innovation activities in 2011.
Mid-to long-term strategy
(Global top 15 life insurer)
04
Samsung Life is aiming to become global top 15 life insurer by
2020. In line with this goal, we have devised mid-term growth
strategies so we can play a leading role in changing and innovating the industry through our customer-oriented products and services.
Maternity
protection at work
07
Committed to addressing Korea’s low birthrate issue, we opened
a Maternity Center in October 2011 to improve working conditions
for female employees.
02
Launch of the
“Love in Us” brand
02
Inspired by the real purpose of the insurance business, one that is
all about caring for people and protecting loved ones from unknown
risks, we launched our new “Love in Us” brand. This allows us to
carry out our philosophy in our day-to-day business activities.
Customer-oriented
management system
05
We continue to improve our management system and work
process to maximize financial and non-financial value for all our
customers. As a result of these and other efforts, Samsung Life
topped the Korea Productivity Center’s National Customer Satisfaction Index (NCSI) rankings for the eighth straight year in 2011.
Open communication
with employees and financial consultants
03
We host a biweekly CEO Message & Reply session that gives the
CEO, employees and financial consultants a chance to discuss
major management issues and the company’s plans and strategies.
Globally competent
employees and financial consultants
06
We operate various career development and education programs
to assist our employees and financial consultants in increasing
their competencies. This includes an Insurance Finance MBA
course at Sungkyunkwan University, a W Leadership course at
Ewha Womans University, a Jungang-Samsung Insurance MBA,
an Ewha-Samsung Academy, and other certificate courses.
1st in the Korea
Productivity Center’s
2011 National Customer
Satisfaction Index (NCSI)
for the 8th straight year
Socially responsible
company
08
We were awarded the Presidential Prize at the 2011 Korea Volunteer Awards and the CSR Company of the Year award at the Asia
Insurance Industry Awards in recognition of our continued CSR
activities and efforts to deal with various social issues as well as
our Junior CEO program for the offspring of CEOs at SMEs.
A role model
for green management practices
09
We were the only financial institution within the Samsung Group to
win a prize at the 2011 Samsung Green Management Awards for
our creative green management practices, which included green
office initiatives, our Stairs of Creativity, socially responsible investment (SRI) activities and planting mangrove trees in Thailand.
03
Message from the CEO
04
“We believe the insurance business is all about caring,
because the foundation of the entire industry lies in protecting you
and your loved ones.”
Dear stakeholders,
I am pleased to report on Samsung Life’s sustainability management performance as we continue on our path to become
a leading financial services company that is respected around the world.
At Samsung Life, we define the essence of the life insurance industry as sincerely caring for people – and this is precisely
how we approach our sustainability efforts. We care deeply about society, customers and stakeholders, with all of our
sustainability efforts aimed at pleasing our stakeholders. We are accomplishing this in four ways.
First, we are growing as a leading global company through ceaseless innovation and change.
Fiscal 2010 was a challenging year for many companies both at home and abroad, as the world was mired in a dim market outlook following the global financial crisis. The quickly changing market environment has created more diversification
in financial instruments and customer needs. In meeting these challenges, Samsung Life is growing as a leading global
company through relentless innovation and timely responses to these changes. While redefining our core values, we have
also revamped our management system and practiced field-oriented management practices to reflect the true value of
the insurance business.
As a result of our consistent endeavors, we posted KRW 1 trillion in net income in 2010, while our total assets surpassed
KRW 150 trillion, a first in the Korean insurance business. I would like to extend my gratitude to all of our employees and
financial consultants for their dedication to change and innovation throughout the year because this remarkable achievement would not have been possible without them. Today, Samsung Life is taking another step towards becoming not just
Korea’s undisputed insurance leader, but one of the world’s top insurers.
Second, we care about our customers, employees and financial consultants.
Customers are Samsung Life’s primary asset, which is why our business systems and processes are tailored specifically to their needs. In fact, we have been ranked number one in Korea’s National Customer Satisfaction Index for eight
consecutive years in recognition of our customer-oriented management practices. As our employees define the level of
customer service we offer, Samsung Life also ensures that we provide a great workplace for them. Furthermore, in pursuit
of integrity management, we are ensuring that our corporate image remains one that is honest and ethical through an extensive ethics training and compliance program. At Samsung Life, we are committed to being a company that employees
love working for.
Third, we actively engage in social contribution activities.
At Samsung Life, we are always seeking ways in which to give back to society and carry this out in four main areas:
youth, community, maternity, and global reforestation. Committed to addressing Korea’s low birthrate and to supporting
creative talent, we are proud sponsors of Sesalmaul, a community-based movement and research center for infants, toddlers and families. We also help teens through the Samsung Life Serotonin Drum Club Program, which assists them emotionally while developing their social skills. In recognition of our commitment to these and other CSR activities, Samsung
Life was a recipient of the Presidential Prize at the 2011 Korea Volunteer Awards. We were also the recipient of Asia Insurance Review magazine’s Corporate Social Responsibility Award of the Year at the 15th Asia Insurance Industry Awards
2011, a first for any Korean insurance company. Furthermore, in 2010 we created a new course called Junior CEO, which
is meant for SMEs and is part of our win-win partnership program with small businesses. Going forward, we will continue
to find ways to properly address social issues and to give back to the community.
Finally, we are furthering green management initiatives to protect the environment for future generations.
Samsung Life cares about future generations and the environment, which is why we have developed a master plan for
practicing green management. In 2011, we focused on establishing green management practices throughout the organization and increased our socially responsible investments. In 2012, we will focus on realizing tangible results from this
established framework.
Samsung Life has just begun its journey towards becoming a globally competitive company that is a leader in sustainability. However, we strongly believe this journey will be made all the smoother because we have the unwavering trust and
support of our stakeholders. Everyone at Samsung Life is fully committed to ensuring the company is not only sustainable, but also a trusted and respected partner for all of our stakeholders.
January 2012
Keun-hee Park
Vice Chairman and Chief Executive Officer
05
Company Profile
12 strategic points in 7 countries
Location
Joint
Representa- Investment
tive office company venture
1
New York, U.S.
2
Tokyo, Japan
1
London, U.K.
1
1
Beijing, China
1
1
Mumbai, India
1
Hanoi, Vietnam
1
Overseas investments
U.K. (1991), U.S. (1993), Hong Kong (1996)
U.K. (1991), U.S. (1993), Hong Kong (1996)
1
1
Bangkok, Thailand
Overseas investment amount
(third party consignment)
KRW
3,500
billion
KRW
200
billion
(as of the end of March 2011)
Emerging as a global financial service provider Samsung Life’s business goal for fiscal 2010 was
to secure profitability and growth to maximize corporate value for which we implemented three strategies: strengthening our mid- to long-term revenue structure, solidifying market leadership, and reinforcing intangible competitiveness through innovation in our corporate culture. To that end, we have established a next-generation IT system
that enables a ubiquitous computing-based operating environment, further strengthening our competitive edge for
our sales network. At the same time, we have introduced an advanced customer and product portfolio management system, while striving to make qualitative growth by enhancing our persistency ratio and revamping our core
competencies through the optimization of our work process. Moreover, we have secured an unrivalled competitive
edge in human resources by recruiting new talents to drive future growth. These efforts have brought about tangible
results. In fiscal 2010, operating revenue reached KRW 26.18 trillion, net income soared to KRW 1.92 trillion, and
total assets stood at KRW 146 trillion by the end of the fiscal year. In addition, we still command the highest market
share in terms of overall protection, annuities, and retirement pension insurance plans. Building on our accumulated
risk management skills and stable profitability base, we are now directing our resources into innovating our business
structure and developing new growth engines for sustainable growth. In the back office, we continue to develop a
wide range of innovative products for customers, giving them a number of different options to choose from. We also
offer customers diversified insurance channels through our advantageous and exclusive sales channels, as well as
general agencies and bancassurance services. Furthermore, we are planning to open the largest retirement research
center in Korea to rigorously prepare for tomorrow’s promising retirement market, which we believe has significant
sustainable growth potential considering the country’s aging society. Samsung Life is also maintaining sound growth
momentum by making more inroads into profitable markets such as high net worth individuals (HNWI). In addition,
setting up a comprehensive marketing team under the direct control of the CEO will allow the company to ensure
the most efficient customer satisfaction management. In order to secure long-term growth engines, we are accelerating our efforts to diversify revenue sources. As part of this effort, we reorganized our existing overseas business
department and aggressively expanded overseas, fully supporting local subsidiaries in China and Thailand.
No. of persons associated with Samsung Life (as of the end of 2010, including overseas operations)
6,072
06
Employees
persons
8.08
Customers
million persons
2,412
General agency
(as of the end of March 2011)
Mid- to long-term roadmap Samsung Life is aiming to become global top 15 life insurer by 2020. In line
with this goal, we have devised mid-term growth strategies so we can play a leading role in changing and innovating the industry through our leading products and services.
Goal
Global top 15 life insurer
Assets of KRW 500 trillion, operating revenue of KRW 100 trillion
Target
Strategies
Domestic insurance business (70%), overseas business + new business (30%)
Strategy 01
Strategy 02
Strategy 03
Strengthening the domestic insurance
business with a focus on retirees and an
affluent customer base
Expanding global businesses to ensure
future growth engines
Diversifying our business portfolio into
new businesses
Ownership structure
Samsung Life reinforced its status as the largest domestic life insurer after it successfully listed on the Korea Exchange on May 12, 2010. Everyone at Samsung Life is doing their utmost to promote the value of life insurance, with our top priority set on enhancing corporate value, which will help us emerge
as a global insurance service provider that is trusted and admired by customers and shareholders throughout the
world. Today, Samsung Life has a stable ownership structure, with majority shareholders holding 56.8 percent of
outstanding shares. Majority shareholders include the company’s chairman, Kun-hee Lee, other Samsung affiliates,
and Samsung Life’s Employee Share Ownership Association (ESOA).
Korea’s largest insurance company
(as of the end of December 2011)
16,180
Kun-hee Lee 20.76%
Samsung everland 19.34%
Market capitalization (KRW billion)
Stock ownership
(as of the end
of December 2011)
E-Mart 7.38%
Samsung Life Public Welfare
Foundation 4.68%
Samsung Foundation of
Culture 4.68%
Samsung Life’s Employee Share
Ownership Association 4.15%
shinsegae 3.69%
CJ Cheiljedang 2.99%
Others 32.33%
07
brand Value
“Love in Us”
Samsung Life launched its “Love in
Us” brand in order to return the support it has received
from customers, employees, financial consultants,
shareholders and society in the true spirit of the insurance business. It also backs up our core value, which
is ensuring customers are happy for life. In line with
this, we released corporate brand image commercials
under a love of family theme through a number of different marketing strategies. We also held focus groups to
gauge the public’s recognition of our brand and to communicate with stakeholders on our brand strategies.
* “Love in Us” brand image exhibition by Samsung Life
Brand management
Brand power is an integral
part of the competitiveness necessary for sustainable
growth. As a result, Samsung Life has been implementing brand management policies to sustain growth in
Korea’s mature insurance market. Our focus is on differentiating our brands from our competitors and developing better policy offers on a more frequent basis for our
customers. It is also on enhancing customer loyalty and
strengthening our premium brand image. In line with
this, we came up with a target brand image which we
then promoted among both customers and employees.
Today, we continue to review and improve upon our
achievements under an established three-step process
called Plan-Do-See.
* The Wall of Hearts, which represents how our customers define “Love in Us”
08
Brand recognition
Samsung Life conducts
brand tracking research as a tool for the sustainable
growth of our brands on a semi-annual and annual basis.
By analyzing developments among key indicators, the
research findings help improve the company’s brand
strategies. Our continued brand management practices
have already realized tangible results, as we now rank
at the top of several brand recognition surveys that are
carried out by independent survey agencies. In fact,
we have been ranked No. 1 on the Korea Productivity
Center’s National Brand Competitiveness Index for eight
consecutive years, and topped the Korea Management
Association’s life insurance brand power rankings for the
thirteenth straight year in 2010. Today, Samsung Life’s
brand value is estimated at KRW 18 trillion by Korea’s
Institute for Industrial Policy Studies, while also ranking
first in the brand valuation insurance category by the
same institute eight years in a row.
“Love in Us” campaign
When Samsung Life launched its new “Love in Us” campaign along with a new
brand, the campaign began with a TV commercial starring Olympic swimming gold medalist Tae-hwan Park. Insurance policies protect us from uncertainties and give us peace of mind. The “Love in Us” campaign captures the very
essence of the value of insurance and reminds us of our need to care for those whom we love. This campaign goes
far beyond mere customer care, though, and actually captures the connection between the love among us as individuals and the insurance business. In short, “Love in Us” is redefining the notion of what the insurance business is
all about.
* Visit our website at http://www.samsunglife.com/company/overview/tv/humanLove1.html to watch all of the “Love
in Us” campaign commercials (Korean).
Samsung Life brand management process
Samsung Life has set brand image targets and has devised a number of plans to maintain the highest levels of customer and employee satisfaction through continuous two-way feedback.
plan
Do
Brand image target, brand mission,
Customer communication, brand
core values, visual identity
incorporation within the organization,
See
Key indicators, brand tracking
alignment to the work process
09
Corporate Governance
Board of directors (BOD) Samsung Life appoints the chair of the BOD from among its independent directors to ensure the board's independence from the company's executive management. We believe this also strengthens a system of checks and balances between the company’s executive management and the BOD’s independent
directors. Both standing and independent directors are appointed by resolution at general shareholders’ meetings.
Candidates for standing director are recommended by the board or shareholders. Alternatively, independent directors are recommended by the Independent Director Recommendation Committee. When important economic or social issues involving the company arise, we arrange ad hoc meetings to brief independent directors on the issue(s)
and then seek their opinions.
BOD subcommittees
Name
Management
committee
Members
Function
Three standing directors - Deliberation and resolution of issues passed on by the board of directors;
other general management issues
- Management and supervision of general business operations matters
Audit committee
One standing auditor and - Request of reports on company information required for company audits
two independent directors
Related party transactions Three independent
- Deliberation and resolution of related parties
committee
directors
Risk management
three standing and two - Establishment of guidelines for risk management in line with
committee
independent directors
management strategies
- Creation of a risk-weighted master plan for management strategies
- Development of mid- to long-term business plans for efficient risk management
Compensation ommittee One standing and two
- Establishing, evaluating, deliberating and reviewing directors’ remuneration and
its appropriateness
independent directors
- Recommendation of independent director candidates to the general shareholdIndependent director rec- Two standing and two
ers’ meeting
ommendation committee independent directors
Two standing directors
Keun-hee Park Vice Chairman & CEO 1, Tae-gon Mun Standing auditor 2
Six independent directors
Su-woon Hwang Chairman of the board 3, Jong-nam Lee Independent director 4, Young-jin Kim Independent director 5,
Bong-heum Park Independent director 6, Keun-ok Ryu Independent director 7, Jeong-dong Kim Independent director 8
* Samsung Life’s board of directors
10
Compensation for directors
Compensation for BOD members is made through their base annual salary, performance-based pay, and incentives within the limits approved for at a general shareholders’ meeting. Base
salaries are calculated according to the job position of each director. More details concerning compensation are
deliberated on by the Compensation Committee, which then passes the motion onto the board of directors for a
final resolution. Samsung Life operates a performance-based pay scheme to ensure fair compensation according
to management performance. Performance-based pay for the CEO is determined through comprehensive evaluation after taking into account both qualitative and quantitative aspects of corporate business results as well as
the CEO’s own contribution. Other directors are paid based on the combined estimate of business results and the
CEO’s evaluation. The limit for fiscal 2010 remained at KRW 20.0 billion, the same amount as the previous year. Of
this amount, KRW 15.9 billion was actually paid out to directors.
BOD activities
Management at Samsung Life reports on the progress of operations to the board of directors
at least once every quarter to keep the BOD abreast of major management issues. Independent directors are also
kept up-to-date with major management issues and general management activities, allowing them to contribute
their specialized skills to the company. In addition to these regular quarterly meetings, ad hoc meetings can also be
convened whenever deemed necessary. For an efficient and cost-effective decision-making process, some functions of the BOD are entrusted to related subcommittees so that all important issues are carefully deliberated upon.
The presence of a majority of directors shall constitute a quorum for all BOD meetings, and a resolution shall be adopted when a majority of those directors in attendance vote in favor of said resolution. Also, directors may exercise
their voting rights via electronic means. At the same time, BOD rules stipulate that any director who has a personal
interest in a resolution at a general meeting cannot exercise his/her voting rights on that resolution.
Organization chart
General shareholders’ meeting
Audit team
Board of directors
Compliance officer
Vice Chairman
New business task force team
Human resources team
Product strategy
division
Call center
Investor relations team
Communications team
IT strategy team
Marketing office
Strategic business
division
Corporate insurance Asset management
business division
division
Corporate business
support office
Corporate planning
division
Individual insurance
business division
International
business division
Retirement research center
Chief actuary
Corporate
governance division
2010 BOD activity record
No. of meetings
No. of resolutions
No. of reports
Average attendance rate (%)
9
25
13
98.9
12
14
0
100
Audit committee
5
8*
13
93.3
Related party transactions committee
5
2*
4
100
Risk management committee
6
13
-
100
Compensation committee
1
1
0
100
Independent director recommendation
1
1
0
100
Name
Board of directors
Management committee
committee
* Includes deliberation meetings (fiscal 2010)
11
Ethical Management
Business principles Samsung follows a simple business philosophy, devoting our talent and technology to
creating superior products and services that contribute to a better tomorrow for everyone. To that end, “People, Excellence, Change, Integrity and Co-prosperity” represent the Samsung Values. Samsung employees are encouraged
to follow these guiding principles when carrying out their everyday duties. In addition, we have created business
principles for all Samsung employees to abide by in their daily business activities to ensure they remain socially responsible and ethical corporate citizens.
Principle 1
We comply with the law and all relevant
ethical standards
Principle 2
We help maintain an honest organizational culture
Principle 3
We respect customers, shareholders and
employees
Principle 4
We care for the environment, people’s
health and their safety
Principle 5
We are socially responsible corporate
citizens
Samsung Values
People
Excellence
Quite simply, a company is its people.
At Samsung, we are
dedicated to giving our
employees a wealth of
opportunities to reach
their full potential.
Everything we do at
Samsung is driven by
an unyielding passion
for excellence, and an
unfaltering commitment
to developing the best
products and services
on the market.
Change
In today’s fast-paced
global economy, change
is constant and innovation is crucial to a
company’s survival. Just
as we have done for the
past 70 years, we continue to set our sights on
the future, anticipating
market needs and demands so we can steer
the company towards
long-term success.
Integrity
Operating in an ethical
fashion is the foundation of our business.
Everything we do is
guided by a moral
compass that ensures
fairness, respect for
all stakeholders, and
complete transparency.
Co-prosperity
A business cannot be
successful unless it
creates prosperity and
opportunity for others.
Samsung is dedicated
to being a socially and
environmentally responsible corporate citizen
in every community that
we operate in around
the globe.
Integrity training Samsung Life offers a variety of integrity training programs to raise employee consciousness about work ethics. Integrity training courses are a mandatory part of employee education and financial consultant education programs. In addition, we organize ad hoc training sessions for employees and financial consultants
working at the company’s head office and branch offices whenever necessary. Since 2010, Internet-based courses
have been offered to all Samsung Life employees concerning anti-money laundering and fair trade compliance.
Integrity training
Course
Description
Employee
- Integrity training shall be included in all courses for newly promoted employees
training
- Integrity training shall also be included in the training courses for branch managers and regional headquarter division
financial
- Integrity training shall be integrated into the new financial consultant orientation courses and regular courses (four and
heads to raise their integrity awareness
consultant
training
Others
seven months after registering) for financial consultants to raise their awareness concerning customer information protection and the prevention of mis-selling
- In 2010, Internet-based courses were added to include anti-money laundering and fair trade compliance, with the
mandate that all Samsung Life employees take both of these courses once a year (In 2011, new Internet-based courses will include insurance contract law, the Korean Insurance Business Act, and the Korean Credit Information Act)
- In addition to the established education system, the company offers training sessions related to the work of all em-
12
ployees and financial consultants
Fair trade compliance program
Recently, fair competition regulations have become stricter to protect
consumers. Regulators now look into any possible cases of unfairness in market competition, while demanding a
higher level of business ethics from companies. As a result, fair trade has emerged as another critical risk factor to
businesses. In response to this, Samsung Life has set up a compliance program (CP), appointed compliance officers, and vested them with the appropriate authority and duties. We have also produced compliance manuals to encourage employees to fully abide by all fair trade regulations in their day-to-day business activities. Furthermore, the
CEO is well aware of the importance of fair trade practices and reiterates his commitment to comply with fair trade
regulations in all business activities. His firm dedication to fair trade practices has inspired Samsung Life employees
to continually participate in the compliance program.
Seven major parts to the compliance program
Declaration by management to
observe the compliance program
Appointing compliance officer(s)
Publishing and distributing
compliance handbooks
Operating the training program
Constructing an internal
monitoring system
Punishment for employees who
violate related regulations
Constructing a system to document
CP performance.
-F
rom the CEO on down, every employee should explicitly commit to comply with this program.
-U
pper management should emphasize their determination to comply with this program.
- Compliance officer(s) should be assigned with the binding authority to effectively implement the
compliance program.
- It is advisable that the BOD (or upper management) appoint all compliance officers.
-T
he handbook should make it easy to understand the related regulations and guidelines in complying with the fulfillment of one’s professional duties.
-C
ase studies should be presented that draw a clear line between what to do and what not to do.
-D
ifferent training should be offered according to one’s job function and position.
-T
hose who have been disciplined for violating the compliance program can have their punishment
lessened if they attend training sessions for at least two hours every six months.
- An internal monitoring system should be established to prevent legal violations and, when possible,
to provide early detection and, ultimately, timely corrections.
- Employee performance records shall be submitted to the BOD at least once every six months.
- Punishment and discipline should be administered when related laws or regulations are violated.
- An individual should be assigned to be in charge of documenting the operation of the fair trade
compliance program so as to keep operations up-to-date.
- The efficient and systematic management of such documentation shall be fairly compensated with
incentives.
No. of jeongdo management training participants
(Unit: persons)
● Non-executives ● Executives
19,002
20,000
Hours and sessions of jeongdo management training
● Hours ● Sessions
850
740
12,000
4,186
106
68
100
50
57
FY09
459
4,000
4,471
FY08
650
FY10
Compliance declaration for fair trade
Samsung Life hereby declares that it will endeavor to eliminate unfair trade practices and establish fair and sound trade
practices as follows:
250
79
88
57
60
FY08
FY09
we will uphold free and fair market competition
and will not profit from any unlawful, irregular or immoral business practices.
Second, we will abide by all fair trade regulations.
Third,
we do not participate in any cartels or unfair trade
practices.
Fourth, we do not implement unfair policies or make use of
false, exaggerated expressions or advertisements.
50
FY10
Organization and regulatory system
BOD
Internal control system
CEO
First,
450
Chief
Compliance program rules of operation
Compliance manager (compliance officer)
Compliance program manual
Bureau (compliance part)
Head office: Compliance officer (team managers)
Branches: Compliance officer (marketing team managers
from regional headquarters)
13
Stakeholder communication
At Samsung Life, we define our stakeholders as shareholders/investors, customers, communities, NGOs, employees,
and financial consultants. We maintain a variety of communication channels with different stakeholders to gather their
thoughts and opinions on the company’s sustainability management practices. As for the issues of highest concern to
our stakeholders, we keep them up-to-date on a regular basis. In the future, we will continue to maintain open
communication channels with stakeholders to further our stakeholder-oriented sustainability management practices.
Stakeholder Communication
Channels and Expectations
Shareholders & Investors
- Reliable dividend payout policy
- Sound corporate governance
- Global expansion and market expansion
General shareholders’ meetings, investment seminars, disclosures, business reports
Customers
- Continued development of new insurance products
- Dissemination of all relevant information
- Consistent service
- Protection of customer information
Corporate website, call center, customer service
center, customer satisfaction surveys
Communities
- Community program support
- Social contribution activities
- Financial inclusion programs for the underprivileged
and rural communities
- Environmental protection
Community service activities, sustainability reports
Governmental bodies
- Transparent disclosure of management performance
- Fair trade practices
- Compliance with all tax laws
Public hearings, press releases, interviews
Employees
- Compensation geared toward performance
- Self-development support
- Encouragement of healthy work-life balance
CEO message, hearings, surveys, blogs, corporate
newsletters
financial consultants
- Compensation geared toward performance
- Competency building programs
- Employee benefit programs
CEO message, meetings, blogs, corporate newsletters, Portal site for financial consultants
14
Major Issues
and Responses
01
ers
d
l
ho stors
e
r
e
a
to
Sh Inv s paid010:
d
&
en in 2 ion
id
s
div lder
o
tal
To areh
sh
W
KR
l
bil
0
40
01
mers
Custo
ers:
02
om
f cust
No. o
sons
p
n er
millio
8.08
03
Communities
Financial support:
KRW
billion
62.0
04
05
Gove
rnme
nta
bodie l
s
KRW
Corpo
rate t
axes:
billion
684.8
Em
& f ploy
co ina ees
ns nc
ult ial
an
No
ts
.
6,0
72
38
,5
94
No
of
.o
em
f fi
plo
na
nc
pe yees
ial
rso
:
co
ns
ns
ult
pe ants
rso
:
ns
* Dividends, social contributions, corporate taxes: as of the end of March 2011
No. of customers, employees and financial consultants: as of the end of December 2010
After the latest global financial crisis, shareholders and
investors demand transparent and ethical business practices more than ever to ensure the stable, sustainable
growth of a business. In light of this, Samsung Life upgraded its risk management system to meet the highest
global standards, established a research institute dedicated to product development, and sought ways to expand
globally. Samsung Life will continue to grow as a leading
multinational insurance company by securing sustainable
growth engines through relentless innovation.
02
Customer satisfaction lies at the heart of everything we
do at Samsung Life. Dedicated to continuously providing
services beyond customer expectations and the industry’s leading customer service programs, we are also
consistently developing new products to reflect customer needs. In doing so, we believe we are promoting the
value of insurance, while also increasing the company’s
recognition among the public. At the same time, we take
customer information protection extremely seriously,
putting it at the top of our priority list in the day-to-day
operation of the organization and training programs.
03
Samsung Life devotes much of its resources and energy
to the mutual growth of the company and society. We
offer our business acumen to help the underprivileged
through various social contribution programs and
company-sponsored microfinancing. We also provide
socially responsible insurance products.
04
Samsung Life faithfully fulfills its legal obligations in
terms of fair trade practices, right selling practices, and
the transparent disclosure of all management activities.
In answer to the Korean government’s green growth initiative, we continue to increase our investments in green
businesses on an ongoing basis, while meeting all of our
tax responsibilities. Furthermore, we proactively respond
to the government’s microfinance programs as we make
every effort to ensure the sustainable growth of society.
05
We believe that fostering competent employees and financial consultants is crucial to a company’s sustainable
growth. As a result, Samsung Life has been developing
and subsequently operating career development programs that are tailored to specific job positions and the
competencies of our employees and financial consultants. In fact, Samsung Life goes so far as to support our
financial consultants with related courses when they seek
to attain a relevant certificate for their job through an Internet-based course on taxation that we offer. In addition,
our generous employee benefit programs include several
different maternity-related programs to better serve our
female employees.
15
Materiality Analysis
For this sustainability report, we came up with 29 issues
that needed to be examined to address widely accepted
Step 1
Listing the issues
sustainability management criteria such as the GRI G3.1
Guidelines, the DJSI indexes, and the Korean Insurers’
Corporate Social Responsibility Guidelines. From this list
of 29 issues, we determined the relevant material issues
by assessing the level of stakeholder concern and their
impact on our business. This report details the company’s
policies and activities as they relate to the material issues
identified through this process.
Materiality analysis process
Global/Domestic industrial
trend analysis
Step 1 Listing the issues
Review of global standards
Identifying material sustainability issues
Industrial trend analysis
We thoroughly reviewed and
analyzed Korean and global sustainability management trends, related domestic regulations, the international financial industry’s sustainability management practices and reports, and media reports on
Samsung Life and the Korean insurance industry.
Review of global standards
Samsung Life reviewed the
standards related to sustainability management from around the
world in order to ensure that our sustainability management practices
met the highest global standards. We referred to the GRI G3.1 Guidelines (including the Financial Service Sector Supplement), the Dow
Jones Sustainability Indexes (DJSI), the Korean Insurers’ Corporate
Social Responsibility Guidelines and the Carbon Disclosure Project
(CDP) to identify where improvements could be made and to complement our sustainability management practices.
*GRI (Global Reporting Initiative) G3.1
This is a nonprofit organization that promotes economic sustainability by providing a comprehensive sustainability reporting framework that is widely used around the world.
Internal stakeholders
Step 2 Stakeholder assessment
Assessment of stakeholders’ concern
External stakeholders
in and current status of each issue
(based on interviews with employees,
Interviews with experts
external stakeholders, and experts)
Step 3 Finalization of material issues
materiality
assessment matrix
Finalizing the material issues by
processing the materiality assessment
* DJSI (Dow Jones Sustainability Indexes)
Launched jointly by the Dow Jones and SAM in 1999, Dow Jones Sustainability Indexes
track the financial performance of the world’s leading companies and provide reliable and
objective benchmarks to manage sustainability portfolios.
* CDP (Carbon Disclosure Project)
Established in December 2000, this is an international nonprofit organization working to
reduce greenhouse emissions and encourage sustainable water use by businesses and
communities.
Issue listing process
Identifying sustainability issues within the global insurance industry
matrix
Benchmarking/Media analysis
GRI 3.1 /DJSI/Korean Insurers’
Corporate Social Responsibility
Guidelines/CDP
Global/Domestic industrial trend
Global standards
Identifying issues
Structuring issues
Finalizing the issue list
16
Step 2
Step 3
Stakeholder assessment
material issues finalization
Stakeholder surveys We surveyed stakeholders to prioritize
the issues identified from the sustainability trend analysis. Of Samsung Life’s 6,072 employees, 608 (9.8%) and 4,979 external stakeholders answered the surveys, giving them a chance to express their
opinions about Samsung Life’s material sustainability issues.
We finalized the content of the report based on an analysis of material issues using the materiality assessment matrix. The analysis findings identified ten material issues in six categories. We have included
the company’s plans and performance regarding these issues in this
report.
Interviews with experts
We also interviewed outside experts to seek their thoughts and suggestions concerning the company’s sustainability management activities and future direction plans.
Four experts from different sectors contributed invaluable opinions on
the company’s economic, social, and environmental activities.
Sustainability Management Surveys
Respondents: 5,587 respondents including employees,
financial consultants, customers
Subject: Samsung Life’s sustainability management practices and
issues of concern
Medium: Company intranet and e-mail
Period: Sep. 2011 ~ Oct. 2011
The 10 material sustainability issues in six categories
Management
Sustainable growth engines – p. 22
Risk management – p. 28
Environment
Green management practices – p. 61
Energy conservation – p. 64
Labor
Training programs – p. 42
Working conditions – p. 43
Society
CSR activities – p. 48
Business ethics – p. 12
Human rights
Elimination of discrimination – p. 40
Product liability Facts and figures for products and services – p. 29
External and internal stakeholders survey results
Business results, compliance with
environmental regulations, employee
benefits, legal compliance, customer
information protection, elimination of
forced labor/child labor, human rights
training for security guards
2.72
2.69
2.63
2.71
2.69
2.96
(Unit: on a scale of five points)
External
Economy Environment
Labor
Society
Human
rights
Product
liability
In the survey, stakeholders scored our sustainability management
practices in the six major categories an average of 2.73 points. Of
the six major categories, they gave us the highest scores on our economic performance, owing to our proactive stakeholder communication on management issues since the IPO.
By publishing Samsung Life’s first sustainability report, we are now
able to fully disclose our social and environmental activities to our
stakeholders. In the future, we will continue to expand the scope of
reporting with our social and environmental activities, while also listening carefully to stakeholder feedback on these and other management activities.
Greenhouse gas reduction, public welfare infrastructure, industrial leadership
Prevention of mis-selling, customer
satisfaction enhancement, promotion of
anti-corruption, diversity throughout the
workforce, contribution to community development, making human rights practices
a criteria for selecting new partner companies, harmonious labor-management relations, establishing regular communication
channels, wastewater reuse.
Internal
17
Stakeholder Interviews
Samsung Life interviewed experts from many different sectors to gather their opinions on the company’s
sustainability management practices. In the future, we will continue to do this in an effort to further improve
our business plans and performance.
“A brand name on its own is not
enough to compete in today’s
global market. Thus, Samsung
Life needs a more aggressive
marketing strategy.”
Shi-hyung Lee, Chairman of the Korean Life
Insurance Foundation
What are your thoughts on Samsung Life’s current social
contribution activities and do you have any suggestions for
the company’s future plans?
Although people might not know it, Samsung Life has been very active
when it comes to social contribution activities. We here at the Korean
Life Insurance Foundation greatly appreciate Samsung Life’s huge
contribution to our social contribution activities. In fact, no other insurance company contributes as much to our foundation as Samsung
Life. On top of that, the company has taken measures to address
mental health, gambling addictions, and suicide in Korea before anyone else in the industry. As Samsung Life continues to grow internationally, it also needs to turn its attention to global issues. In particular,
I think it’s important to address juvenile delinquency around the world.
In that regard, I think Samsung Life’s Serotonin Drum Club will be extremely effective.
Compared to other leading global companies, what would
you suggest Samsung Life do when it comes to its future
sustainability plans and how it communicates with stakeholders?
I find Samsung Life’s marketing strategies a little conservative and not
internationally driven enough. If it’s going to become a leading global
company, it needs a more aggressive marketing strategy and not one
that relies solely on its reputation in Korea.
When it comes to stakeholder engagement, I think Samsung Life
should continue to deal with the nation’s low birthrate and aging society issues. Measures need to be taken now if these issues are to
be dealt with properly. As the nation’s largest life insurer, I believe that
Samsung Life is obliged to take these issues seriously.
18
“Earning the trust of stakeholders
is crucial.”
Gil-ya Lee, Chairman of the Gacheon Gil
Foundation
What does Samsung Life need to do to ensure sustainable
growth?
Earning the trust of stakeholders is crucial. In this context, I think it
was appropriate that Samsung Life recently came up with a new slogan called “Love in Us” and aligned its corporate organization with the
new slogan. Now it needs to make sure that everyone at the company
is on the same page. When every one of our employees unites under a
shared goal, Samsung Life will be able to earn stakeholders’ complete
trust and achieve sustainable growth.
What should we do to ensure candid communication with
stakeholders and earn their trust?
Communication is not a one-way street. I believe Samsung Life needs
to establish a regular interactive communication channel. Although
every company claims to listen to their stakeholders, I doubt if they
reflect these opinions in the decision-making process. In the truest
sense, communication goes well beyond just listening to someone;
a person’s opinions have to be put into practice. And that is exactly
what we expect from communication.
Interview Summary
Samsung Life was able to learn of the
most important material sustainability issues to its stakeholders and
to take into account the thoughts of experts on its activities and performance, while considering the risks and opportunities it may come
across in the future.
“As an investor, I think Samsung
Life should further improve upon
its corporate value.”
Young-il Kim, Head of Korea Investment Trust
Management’s Equity Investment Division
What do you think of Samsung Life? What do you expect
from the company as an investor?
Samsung Life’s corporate image should come from its dominant
market share of the Korean life insurance industry. It should also take
advantage of its affiliation as a subsidiary of the Samsung Group, Korea’s largest conglomerate, and a shareholder in the Group’s major affiliates. Samsung Life has earned a reputation for being a leader in the
financial services industry and a company with an immensely reliable
risk management capacity that has attained financial stability.
As an investor, I would like to ask Samsung Life to further enhance its
far-sighted corporate value rather than focusing on short-sighted profitability. Recently, falling sales from low-profit savings-type products
have eroded the company’s dominant market share. Yet Samsung Life
had been in a position to make bigger profits by increasing the sale
of highly profitable protection-type products. In order to deal with this
problem, I think they need to clearly understand customer needs and
diversify their sales channels. Amid the increasing customer need for
protection-type and pension products, they should refrain from being
focused on short-sighted profitability.
1
Samsung Life’s sustainability management activities and
performance from the perspective of external stakeholders
2
Major sustainability issues and responses of the Korean
insurance industry and Samsung Life
3
Suggestions for the promotion of sustainability management
practices
“We shouldn’t expect to gain much
when we don’t put in a great deal
of effort.”
Yeon-hwan Cho, Former chief of the Korea Forest Service (now the incumbent director of the
Cheollipo Arboretum)
Samsung Life has only recently started to take part in reforestation campaigns. What should the company’s priorities be in terms of reforestation campaigns?
From what I gather, Samsung Life wants a happier, healthier society
for everyone. This requires a greener environment, as forests – and
nature in general – is an integral part of life and of our well-being. As
such, I think it’s great that Samsung Life is taking part in reforestation
campaigns. At the same time, we can’t get too greedy. We can’t expect to gain more than we put in. Forests need time to grow and help
benefit the planet. As a result, we shouldn’t say we’re reducing carbon
dioxide in the atmosphere and raising corporate value simply by planting some trees. While corporate value enhancement is the ultimate
goal of any company, it should not be the goal of green management
activities. Corporate social responsibility is not just about achieving
goals and creating tangible results in the short term. It requires the
consistent use of resources and hard work to generate lasting results
and returns.
Future plans At Samsung Life, we listen to what our stakeholders have to say and incorporate their thoughts into our future sustainability
management plans. At the same time, we will report on all of our accomplishments and activities in our future sustainability publications. The
social, environmental and economic issues which our stakeholders raised during interviews have been classified as issues of high concern in
our materiality test. While we have included our performance results for issues we have already carried out, we will also take the appropriate
measures on issues which we have not yet addressed and report on their performance in future publications. In addition, we will continue to listen carefully to the opinions of stakeholders in a proactive way and take the required actions to address stakeholder issues.
19
01
Business
Moving forward
Constant innovation and systematic risk management constitute integral parts of our industry
and the necessary elements to become a global leader in the insurance field. Samsung Life will not
stop relentlessly embracing change so that we can compete at the highest level on the global stage.
1.1 Sustaining growth through innovation
1.2 Improving financial performance
1.3 Strengthening risk management to protect customers and
corporate values
Management Principles
As Korea’s top life insurer, Samsung Life continues to hone its sales
competitiveness and adopt advanced customer and product management systems. This ensures we continue to generate unrivalled
performance in the industry as we preemptively manage all risks
associated with our normal business activities and enhance our
corporate value. Samsung Life has developed an industry-leading
R&D system to provide advanced insurance products and services.
At the same time, we seek to expand our business into new markets by pursuing retirement/HNWI markets, advancing into foreign
markets in search of future growth engines, and diversifying into
new businesses.
Performances
In fiscal 2010, Samsung Life’s net income amounted to KRW 1.92
trillion, 112 percent higher than in 2009, with operating ROE standing at 23.2 percent. At 99.68 percent, our financial consultants’ right
selling rate far outperformed the industry average. First launched
throughout Korea in September 2008, Samsung Life’s Perfect Combination Life Insurance plan integrates every kind of coverage – from
whole life to critical illness to medical indemnity – into a single insurance policy. Since introducing them in September 2008, we have
sold 1.79 million of these policies as of the end of December 2011.
Our Goals
- To lead the global insurance industry through an efficient and innovative management system
- To expand into new business areas domestically and overseas
- To be a leader in the financial industry through constant shareholder value creation
- To strengthen risk management capacity in the work process
20
1,925
99.68
13.99
1.79
KRW
billion
Net income
%
Perfect selling ratio (financial consultants)
%
ROE
million plans
Perfect combination life insurance sales
(accumulated up to December 2011)
21
1.1
Sustaining growth through innovation
In order to sustain growth, Samsung Life embraces change and innovation in all its business
activities. With mid- to long-term strategies to grow as a top global company, we have realigned our business philosophy and core values as we innovate and change along the way.
Going forward, we will continue our efforts towards sustainable growth to benefit society and
customers.
Mid- to long-term goals for sustainable growth
Samsung Life is determined to become global
top 15 life insurer by 2020. To attain that goal, we have developed several mid- to long-term strategies. At the same
time, we have reorganized the company to strengthen our fundamentals for future growth, while improving key
strategies. The reorganization was implemented so that we could expand into other markets and diversify into new
business areas. To that effect, we have come up with new strategies. This includes reinforcing our domestic market
share of the retirement and affluent customer base, promoting the international business division, and advancing
into the asset management business. Under our new mid- to long-term goals, Samsung Life has set a course for innovation and change on a company-wide level, establishing the foundation for sustainable growth.
Change and innovation in the company’s management system The way business is done today
has shifted, with customers now the real focus of successful companies. As a result, the old way of doing business
will not ensure sustainable growth any longer. Keenly aware of this, we strengthened our customer-oriented management system and innovated our work process. Under this customer-oriented management system, our work process
has been designed for the benefit of our customers and in a way that can provide the best possible financial and nonfinancial value for them. In line with our new business philosophy of protecting people and their loved ones, we redefined our core values as: customer orientation, respect for humanity, professionalism, an enterprising spirit, and active
communication. In addition, our new vision is to become “a customer-oriented global life partner.” This was part of our
effort to change our corporate culture into one more flexible and open to innovation and change.
Delivering the value of the insurance business through MBWA practices
Samsung Life
knows the importance of Management by Wandering Around (MBWA). Under the strong belief that issues and solutions lie in the field, we are changing our management practices to center on the field. We began with our CEO
Message session as a venue for bottom-up communication, where top executives went out to the field to listen to
people who are actually out there. From January to December, we held a total of 24 CEO Message sessions, with
the president and top management traveling around the country and visiting 51 offices from Gangwon-do to Jeju.
This was part of a customer-oriented management initiative after the CEO reiterated his commitment to promote interactive communication at a company-wide business strategy conference. As a result, Samsung Life was provided
with the chance to share its plans and strategies with the entire workforce. As part of MBWA practices we promote
creativity and innovation at workplaces and are increasing our support for financial consultants who spearhead the
value of the insurance business. In line with this, we have strengthened the mentoring program for new financial
consultants, offering them more opportunities to quickly acquire work skills. We strongly believe that these MBWA
practices will set the groundwork for us to grow as a leading global insurance company.
Customer-oriented work process & product/service development
Samsung Life has set
customer-oriented management as its core value, reiterating its devotion to the highest quality of products and
services that ensure the highest customer value. As such, we are realigning the work process to a more customeroriented one and developing differentiated products and services that will further customer value. We are streamlining policy purchase procedures by adopting electronic sign-up services, improving policies and enhancing the
convenience of the diagnosis procedure. Through these efforts, we aim to become one of the world’s top customeroriented management insurance companies.
22
* Samsung Life Business Strategy Conference
* MBWA practice-a visit to the Geumjeong Regional Office
R&D efforts drive advanced insurance products Samsung Life maintains its industrial leadership
through consistent R&D efforts at our Retirement Research Center and Insurance & Finance Research Institute.
Founded in February 2011, our Retirement Research Center is Korea’s largest such institute where the nation’s top
talent research effective and efficient retirement and financial planning models, helping people prepare for a better retirement. As a think tank for advanced retirement planning models, it offers customized retirement planning
solutions which help people prepare for a desirable retirement. Established in April 2011, the Insurance & Finance
Research Institute consists of a financial industrial team, policy research team, and global strategy team. Moreover,
the entire research team is comprised of men and women with master’s and/or Ph.D. degrees who focus on futureoriented research. Based on preemptive forecasts about changes in the insurance and financial fields, the Insurance
& Finance Research Institute is helping Samsung Life secure mid- to long-term competitive advantages, while also
advancing the development of the Korean insurance industry.
An admired company
Samsung Life proactively engages in various corporate social responsibility activities that advocate the true value of the life insurance business. We have dealt with a wide variety of social issues in
search of solutions, focusing on solving problems concerning future generations through such programs as Sesalmaul and the “Love in Us” Serotonin Drum Club for youth. We also sponsor the Mother’s Wish Lamp program, a
medical and living expenses subsidization program for children from low-income bracket families. In addition, we
extend help to single mothers who start businesses and single seniors with their living necessities. We firmly believe
that our social contribution activities will bring about a better society, one which will also help our customers. In the
future, Samsung Life will continue with such innovation drives, enhancing corporate value for realizing growth for
society as a whole.
Five core values for innovation and change
Customer orientation
Serving customers like a member of their family
Respect for humanity
Respecting people and supporting their growth
Professionalism
Developing competencies at the highest global standard
Enterprising spirit
Creating a new customer base and exploring new markets through change and innovation
Active communication
Practicing communication as a fundamental part of management
New Marketing
* Samsung Life University Student Supporters
Full-scale marketing with 2030 customers
* Samsung Life Customer Panel Program
Retaining future customers is as important as retaining existing
customers. As a result, people in their 20s and 30s are a hugely valuable customer base for us, which is why Samsung Life
has launched numerous marketing campaigns to appeal to them. One example of this is our University Student Supporters group; and we brought in young sports stars like Tae-hwan Park and singer Jeong-hyeon Park for TV commercials and
hosted a Korean Speech Contest for Chinese students studying in Korea.
23
1.2
Improving financial performance
Throughout fiscal 2010, Samsung Life aggressively pursued three main corporate strategies:
securing solid sources for mid- to long-term profitability, strengthening our market leadership, and reinforcing intangible competitiveness through corporate culture innovation. These
three goals continue to be pursued under management’s direction to secure profitability and
growth for maximum corporate value. As a result of these efforts, we rank at the top of several key industry indicators, including operating revenue, net income, total assets and riskbased capital (RBC) ratio.
Highest net income in history & strong growth in assets/capital and embedded value
Samsung Life’s total premium income for 2010, excluding corporate pensions and retirement insurance, reached
KRW 18.79 trillion, a 4.9 percent increase over 2009. Including corporate pensions and retirement insurance, this
figure stands at KRW 21.57 trillion. Our net income for fiscal 2010 grew 112 percent to a record KRW 1.92 trillion.
In addition, total assets increased 10 percent and shareholder equity by 27 percent by the end of the year, reaching KRW 146.35 trillion and KRW 15.39 trillion, respectively. Our RBC ratio, a reliable gauge of an insurer’s financial
strength, also jumped by 52 percentage points, to 332 percent, by end the year. Meanwhile, Samsung Life’s embedded value at the end of fiscal 2010 increased by 21 percent, to KRW 21.32 trillion, over the year.
Tight cost discipline and claims management improve expense and loss ratio
Samsung
Life’s operating expense ratio and loss ratio improved thanks to our continued tight cost discipline and claims management efforts. Also, the company’s operating expense ratio in fiscal 2010 decreased by 0.1 percentage point, to
15.2 percent, from the previous year. When excluding one-time organizational restructuring expenses, our loss ratio
was still stable, having decreased by one percentage point year-on-year to 84.3 percent for the entire fiscal year.
Samsung Life financial performance summary (Unit: KRW billion)
I/S Summary
Premium income (Corporate pension excluded)
APE *
B/S Summary
FY09
17,913
4.9%
3,526
3,659
–3.6%
Net income
1,925
906
112.4%
Total assets
146,354
133,045
10.0%
Invested assets **
118,656
107,229
10.7%
Shareholder equity
15,390
12,133
26.8%
332%
280%
52%p
21,325
17,599
21.2%
RBC ratio
EV Summary
Change (%)
FY10
18,787
Embedded Value
New business value
New business margin
1,021
1,074
–5.0%
29.0%
29.2%
–0.2%p
* APE(Annualized Premium Equivalent)
** Invested assets exclude special account assets (KRW 21.5 trillion) and unamortized deferred acquisition expenses
(KRW 3.8 trillion won, as of March 2011).
Fiscal 2010 Samsung Life management value flow
KRW 26,177.8
billion
Interest income
KRW 5,069.7 billion
Asset management income
KRW 1,711.0 billion
24
Economic value
distribution
m
Non-operating
revenue
KRW 775.6
billion
Os/others
/NG
ies
t
i
un
donations
/others
KRW 76.6
billion
claims paid
/policy reserves
KRW 16,514.7
billion
taxes
KRW 684.8
billion
ve
rn
me
nt
Go
Other operating income
KRW 4,546.4 billion
Co
m
Reinsurance income
KRW 261.3 billion
Operating
revenue
Customers
Premium income
KRW 14,589.4 billion
Fourth quarter APE up 23% over first three quarters’ average
Samsung Life’s annual premium equivalent (APE) for 2010 was KRW 3.53 trillion, 3.6 percent lower than in 2009. This drop is largely due to a
high base effect and stemmed from an exceptional boost to our 2009 APE record just before the October 2009 regulatory standardization of indemnity health insurance products, as well as the January 2010 change to the experience
life table. In addition, company-wide campaigns to improve policy persistency and eradicate mis-selling practices in
the 2nd and 3rd quarters also temporarily undermined our new business sales. As a result of our new growth strategy
and field-oriented management focus, however, new business sales rebounded across all our product lines, namely
protection, annuity and savings plans. Breaking down APE performance by quarter, 4th quarter APE in 2010 stood at
KRW 1.27 trillion, 23 percent higher than Samsung Life’s average APE for the first three quarters that same year.
Loss ratio
Annual APE
FY09 FY10
1Q ~ 3Q vs. 4Q
1,027
(Unit: KRW billion)
3,526
FY09 FY10
FY10
FY10
1Q ~ 3Q
4Q
(average) (average)
Sam
su
ng
L
ife
KRW 3,955.2
billion
Wages and
benefits, bonuses,
severance
allowances
KRW 791.3
billion
Other expenses
and losses
expenses
(employee distribution excluded)
KRW 740.5
billion
Net income
KRW 1,924.9 billion
es
FY09 FY10
3,659
84.3%
85.3%
15.2%
15.3%
(Unit: KRW billion)
833
Expense ratio
ye
plo
Em
* The above figures are based on a fiscal year spanning from April 1, 2010 to March 31, 2011.
25
Continued persistency improvement through an emphasis on sales efficiency
Our persistency rate for fiscal 2010 was 81.8 percent and 62.5 percent for the 13th and 25th months, respectively, translating to a 4 percentage point and 1.7 percentage point improvement year on year. Breaking down those improvements quarterly, there was a steady upward trend over each quarter. The stand-alone rates of the 13th and 25th
months for the 4th quarter were the highest, at 82.4 percent and 64.8 percent, respectively. These improvements in
persistency were a direct result of the company’s efforts to instill efficient sales practices. As a result, we expect our
persistency rate to continue improving as we move forward.
* 13th (25th) month persistency rate: the rate of payment for premiums up to the 13th (25th) month since subscription to the insurance policy. The lower the
figure, the more the inactive subscribers.
Improvement of high-yield investments through continued asset liability management
(ALM) matching strategy Samsung Life continued to steadfastly adhere to its asset liability matching investment strategy. In doing this, we saw the proportion of bonds in our investment assets grow by three percentage points,
making up 56 percent of our investment assets. Together with our loan book, the total share of interest bearing assets
as a percentage of total investment assets now stands at over 80 percent. Meanwhile, our investment yield increased
by 90 basis points, to 6.4 percent, thanks to proceeds from the sale of our privately placed beneficiary certificates
ahead of the implementation of IFRS Phase I on April 1, 2011. The sale also helped our adjusted investment yield,
which adjusts for unrealized valuation gains on our AFS securities, which increased 120 basis points to 7.4 percent.
Yearly persistency rate
FY2010 quarterly persistency rate
● 13th month ● 25th month
85
● 13th month ● 25th month
85
82.4%
81.8%
80
81.3%
81.4%
77.8%
81.9%
80
75
64.8%
65
62.5%
60
60.8%
FY09
60.8%
61.2%
1Q
FY10
2Q
63.4%
3Q
65
60
4Q
Investment asset portfolio
Bonds 56%
Real estate 4%
Beneficiary certificates 3%
Cash & deposits 4%
Equity 13%
Loans 20%
Loans to large corporations/SMEs
(Unit: KRW 100 million)
Large corporations 23,738
Real estate PF 5,777
SMEs 24,216
KRW 100 milion)
SME Loans by business type ( Unit:
Manufacturing
248
Construction
8,918
Wholesale
1,965
Hotel & Restaurant
Others
2,954
10,123
Real estate
* Total outstanding loans extended to corporate clients
and retail clients as of the end of August 2011
26
8
6.4%
7.4%
146
FY2010 invest yield
FY2010 adjusted invest yield
KRW
trillion
FY2010 total assets
332%
FY2010 RBC ratio
Continued growth in invested assets and capital position
By year’s end, Samsung Life’s total assets grew 10 percent, to KRW 146 trillion, while our investment assets grew 11 percent, to KRW 119 trillion.
Our risk-based capital (RBC) ratio, which completely replaces the Solvency I regime that started from fiscal 2011,
stood at 332 percent by year’s end, jumping 52 percentage points year on year. This was due to the fact that we
saw an increase in our risk amount or required capital of only three percent, to KRW 6.66 trillion, while our available
capital grew by 22 percent, to KRW 22.12 trillion, due to an increase in net profit, which consequently led to a rise in
our retained earnings as well.
Sharp rise in net profit due to stable insurance profits and one-time Seoul Guarantee
ABS loan loss provisions
In 2010, Samsung Life’s net income more than doubled, to KRW 1.92 trillion.
This outstanding performance can be attributed to the KRW 900 billion one-off profits for the year that arose from
the recovery of our Seoul Guarantee ABS loan loss provisions and the gain on our disposal of beneficiary certificates that we realized ahead of the introduction of IFRS Phase I. Even without these one-off items, our net income
for the year was 13 percent higher than the previous year. As a result, our stated ROE jumped from 9 percent to 14
percent in 2010, and our operating ROE, which adjusts for unrealized gains on affiliate holdings, jumped 8 percentage points, to 23 percent.
Contributing to national development through project financing
Samsung Life is continually mobilizing its diversified and advanced financial engineering skills to meet the varied financial needs of our
customers. Our financial services include project financing for social overhead capital (SOC) construction and
other development projects, financing leveraged buyouts for mergers and acquisitions, real estate financing, assetbacked securitization, asset-backed loans, and underwriting lease debts.
● ROE ● operating ROE
23.2
FY10
FY09
14.0
9.3
15.3
119
146
133
107
FY09
Net income (Unit: KRW billion)
(Unit: %)
1,925
ROE
● operating ROE ● ROE
906
Total assets/Invested assets (Unit: KRW trillion)
FY10
Samsung Life SOC investment by industry
FY09
FY10
Samsung Life’s investment portfolio
Roads, railways,
ports 57%
Power generation,
energy 35%
SMEs
Large Corp.
SOC
34%
2%
Real estate PF
12%
-
6%
28%
Office-secured loans
Others
Total
9%
9%
61%
39%
* A total of KRW 4.17 trillion in loans had been granted as of the
end of August 2011 (excluding equity)
Sewage systems, schools,
military facilities 8%
* Based on asset holdings as of the end of August 2011
(SOC: KRW 1,905.5 billion out of total asset holdings of KRW 4,851.8 billion)
27
1.3
Strengthening risk management to protect
customers and corporate values
At Samsung Life, we believe that corporate value can be strengthened by preemptive prevention and systematic management of the risks associated with normal business activities. We
apply the basic principles for the management of risks and related regulations and systems
accordingly. In addition, we maintain our RBC ratio well above the level recommend by Korea’s financial supervisory authorities to ensure a sound financial structure and policy reserve.
Effective prevention and follow-up measures to deal with risks
Samsung Life employs a
phased approach to managing all potential risks throughout the asset management process. To begin with, risk
management policy is decided upon, after which the risk is managed and measures are taken to stem any potential losses. We begin by managing assets in consideration of their individual liability characteristics, managing risks
preemptively and balancing risks and returns. Our approach is both qualitative and quantitative. We measure proprietary Value at Risk (VaR), stress testing instruments, and early warning and response tools through risk monitoring. In addition, our highly experienced underwriters and advanced credit risk management system allow us to filter
out toxic assets, while strengthening our capabilities to analyze the quality of new financial instruments. They also
screen for any investment products that have potential risks related to customer complaints or legal disputes, or
risks that could undermine the company’s reputation. To protect against the potential loss arising from an obligor’s
inability or unwillingness to meet its obligations to the company, we maintain provisions for loan loss reserves and
secured guarantees to mitigate our exposure to credit risk. As of the end of March 2011, Samsung Life’s exposure
stood at KRW 101.26 trillion after mitigating credit risks by means of credit enhancements on total credit risk potential assets of KRW 121.33 trillion.
Establishment of Enterprise Risk Management (ERM) system
Samsung Life is phasing in its
ERM system to better reflect the economic capital in risk-weighted management technology.
[ERM plan] Phase 1: Identifying SLI’s economic capital calculation formula → Phase 2: Calculating the company’s
economic capital
Reinforcing risk-based management technology to better reflect the company’s economic capital
company’s economic capital
Risk strategies
Risk management system
Risk monitoring
Developing an economic
capital calculation formula
and related systems
Risk principles, limits, regulations, procedures
Defining organizational structure, roles and responsibilities
Monitoring and reporting on
management information and
needs
risk management
Detection and management of operations risks
Samsung Life has a system in place to detect and man-
age operation risks to hedge potential losses from mis-selling, calamities, and other non-financial risks. In addition to
systematic tools such as our Service Call and sales license controlling system, we put compliance managers out in the
field. Placing the highest priority of our operations risk management policy on preventing mis-selling practices, we monitor mis-selling indexes at each branch and agency on a monthly basis. In an effort to control risks in the internal process,
all decisions concerning business-related matters must first obtain consent from the internal control department. The
accounting team is vigilant about checking the company’s account balances to prevent discrepancies in settlements or
payments, while the audit department runs periodic and on-demand audits on the company’s operations. For the management of personnel risk, the HR department runs an online ombudsman site so employees can freely communicate any of
their work-related grievances. In addition, the real estate management department periodically runs safety checks on all
the company’s offices and buildings. To heighten security risk management, we also lock all electronic documents with a
digital rights management (DRM) system, making the documents accessible only to approved personnel. Furthermore,
one employee is appointed to be in charge of security in every department. Samsung Life’s recently installed dual firewall
will help prevent any malicious hacking into the company’s computer system as well. Also, we have developed a business
continuity plan (BCP) to protect against unforeseeable risks and calamities. In recognition of our BCP, we obtained the BSI
25999 certificate in 2008, the first time a Korean financial institution had received this certificate. Since then, we have con-
28
tinued to properly manage the BCP system on a regular basis.
Risks faced by Samsung Life Samsung Life classifies risk types into insurance, interest rates, credit, markets, liquidity, and operations. We use different empirical statistics and models by type to assess the effect of the
risks involved, setting risk tolerance and operational guidelines based on these assessments. We then endeavor to
minimize the risk potential through constant monitoring and counterplans.
(as of the end of March 2011)
Insurance risk
Exposure: KRW 2.66 trillion
The potential loss resulting from a discrepancy between the expected risk
rate and the actual occurrence rate, as well as the difference between the
expected claims paid and the maximum amount of actual payment for the
coming year
The potential loss from the discrepancy in the value of assets and liabilities
Interest rate risk Exposure: KRW 91.85 trillion
Credit risk
Market risk
Liquidity risk
(insurance liabilities)
due to adverse fluctuations in interest rates (asset liability management risk)
Exposure: KRW 121.33 trillion
The potential loss arising from an obligor’s inability or unwillingness to meet
(risk-based capital (RBC) system)
its obligation of paying the principal on a loan or interest to the company
Exposure: KRW 11.58 trillion
An RBC system divides market risks into general market risks 1) and variable
(RBC)
annuity guarantee risks 2)
Liquidity ratio: 221.76%
The potential inability to meet all payment obligations when they become due
as a result of a discrepancy in asset-liability management or an unexpected
insufficiency in cash flow
Operational risk
-
A potential direct/indirect loss resulting from inadequate or failed internal
processes, people, and/or systems, or from external events
1) a general market risk refers to the potential loss arising from adverse fluctuations in interest rates, foreign currencies, equity and commodity prices, as
well as their level of volatility
2) variable annuity guarantee risk refers to the potential loss in the value of the company’s variable annuity insurance products arising from adverse fluctuations in the market value of investment assets
Samsung Life risk management organization
At Samsung Life, the Risk Management Committee,
which operates under the BOD, is the top decision-making group governing company-wide risk management. The
Risk Management Committee’s mandate is to establish risk management regulations, develop risk management
procedures, set risk tolerance and guidelines by type, and monitor and manage our risk limits. For the efficient management of different risks, the committee also operates subcommittees that include the Insurance Risk Management
Committee, Asset Risk Management Committee, Crisis Management Committee, Product Committee, Investment
Committee, and Loan Committee.
Samsung Life
risk management
organization & function
Risk management committee
Coming up with risk-weighted
management strategies; review/
resolution of major risk management issues
Insurance risk management
committee
Setting the guidelines for underwriting and claim
adjustments
Asset risk management committee Developing risk management
policies in asset management; setting operational guidelines
Crisis management committee
Developing and operating business
continuity plans (BCP) in the event
of a crisis
Product committee Developing
and revising insurance products;
determining applicable interest
rates
Investment committee
Making decisions about investments
in large-scale securities and real
estate
Loan committee
Making decisions about loan-related matters;
setting credit management standards
Fair trade policies and performance of Samsung Life’s financial products
We have enacted policies, internal
bylaws, and behavioral guidelines to
prevent against all risks associated
with the selling of our products.
Daily monitoring of
mis-selling records
in each department
1
Monthly on-site
inspections and
training for
financial consultants
2
3
Special training
sessions for regional
headquarters with high
mis-selling records
Mis-selling ratio
financial consultant
Individual agency
Bancassurance
TM
Home shopping
Others
Samsung Life (%)
0.32
0.56
0.44
0.52
2.27
0.54
Industry average (%)
1.28
0.74
0.40
3.09
1.86
2.53
* Mis-selling ratio (%) = (warranty rescission + claim rescission + invalidity) number of cases/number of new business
29
02
CustomerS
Enhancing satisfaction
Samsung Life is proud to be a leader in customer satisfaction practices, ranking number one
in several surveys, including the Korea Standard Service Quality Index (KS-SQI), the National
Customer Satisfaction Index (NCSI), and the Financial Supervisory Service’s (FSS) Customer
Protection Evaluation.
2.1 Customer Care Management to enhance values
2.2 Going beyond customer satisfaction
Management Principles
The underlying asset of customer satisfaction management at
Samsung Life lies in perceiving customer needs in advance, putting customer convenience first, and listening to what customers
have to say. The Product Lifecycle Management system supports
the company-wide ability to plan for our customers’ secure, affluent lives. Our state-of-the-art Voice of the Customer (VOC) system
is constantly addressing customer complaints and suggestions.
We also maintain the industry’s top information security system, as
we believe that protecting customer information is an essential part
of our business activities. At the same time, we maintain real-time
customer communication channels through various social networking services, including a corporate blog and Twitter.
Performances
As of the end of 2010, Samsung Life had 8.08 million customers.
This figure is more than a mere number to us and instead represents an opportunity to help pave the way for people to enjoy a
secure, affluent life. We take pride in our unparalleled leadership in
numerous customer satisfaction surveys by reliable authorities such
as the NCSI, KS-SQI, and the FSS.
Our GoalS
- To complete our customer care management system
- To maximize customer satisfaction activities
- To enhance the service quality of our insurance products
30
8.08
8
0
million persons
years
case
Introduction of the
CCMS
No. of customers
Ranking atop the National Customer Satisfaction
Index for the 8th straight year
Violation of privacy protection regulations
and leakage of customer data
Acquisition of the Korea Fair Trade
Committee certificate in 2007, a first
in Korea’s insurance business
(CCMS : Customer Complaints Management System)
31
2.1
Customer Care Management to enhance values
Customers are the very reason for our corporate existence. Through Customer Care Management, Samsung Life will remain a trusted life-long partner that provides customers with
valuable products and heartfelt services.
* Samsung Life employees attend to customers with the utmost care.
Goals & strategies
The notion that customers are the very reason for our growth and existence underpins
Samsung Life’s customer care management policy. In 2003, we established a Customer Policy Office under the direct control of the CEO, while placing customer value creation at the top of our priority list in all of our management
activities. In addition, we declared our company-wide commitment to practices that best serve our customers. As
part of our customer-oriented work process, we have established a “one-stop” service program at major hospitals,
an integrated call center, company-wide business process reengineering (BPR), and a service satisfaction evaluation
system.
Samsung Life Customer care management chronicle
Evolving from mere customer satisfaction to total customer service and finally customer care management!
1957-1990
1991-2002
Start of customer satisfaction management
Customer service management established
Customer convenience system developed:
Service satisfaction evaluation and on-site
Customer consulting service, First in the
verification system completed, Company-wide
industry to adopt an automatic payment
customer relationship management (CRM)
system, Cooling-off system introduced
system completed, Insurance quality warranty
introduced, a first in the industry
32
Customer-oriented product development As part of our leading customer care practices, Samsung
Life established the Customer Love Way, which spells out the basic principles for our customer care practices. We
also streamlined our product development process to better develop products that meet the varied needs of our
customers. Furthermore, our Product Lifecycle Management (PLM) system encompasses the entire process of developing and managing products at the highest global standards, enabling us to plan for the secure, affluent future
of our customers.
Product development process
Stage 1 Market opportunity analysis
Stage 2 Feasibility study
-G
enerate ideas for new products (collaboration among
departments in charge of the product/marketing/different
channels)
-R
eview the appropriateness of the market, target customers,
and strategies
- Specification of products: developing and innovating product concepts
- Pre-commercialization study: review of feasibility, risk factors, risk ratio statistics, possibility of authorization
Stage 3 Feasibility test
Stage 4 Commercialization
-P
lan the product structure and testing
the product concept
-R
eview product development and revisions by related departments
-R
eview distribution channels and sales volume estimates
- Run profit tests and reviewing profitability guidelines
- Consult with senior management (senior staff of related
departments)
Stage 5 Strategy review
Stage 6 Internal & external approval
- List business cases
-P
roduct Committee: final review of the product and associated risks in light of business strategies
- Finalize the launch schedule after obtaining approval from
the CEO
- Prepare for approval of the product by required authorities
Stage 7 Preparation for launch
Stage 8 Final review prior to launch
-P
reparation for launch and launch planning
-C
heck legal compliance risks and producing all related
materials
- Distributing training, materials/customer, promotion materials/marketing materials
- Ensure that proper product education practices are being
taught to customer service staff
Stage 9 Launch
Stage 10 Performance review & feedback
-A
pproval for the launch: go-ahead given for the launch
-L
aunch: notification of established regulations
- Marketing performance (sales) analysis and operational
results (profit/loss, risks) analysis
- Checking for shortcomings or what needs improvement by
the Product Committee for changes to the conditions of sale
or even the termination of sale
2003-2010
2011
road map
Customer service management
Customer care management
Establishment of Customer Policy Office, Enact-
Solidifying customer-oriented management
ment of Customer Service Way, a business ethics
practices and a customer-oriented mindset in
code, Encouraging employees to handwrite letters
employees, Practicing customer care
to customers, Reinforcing employees’ customer
management at the highest global standard
service competencies at customer contact points
33
Customer-oriented insurance products
Samsung Life has completed work on a meticulously organized customer relationship management system that is based on a philosophy centered on customer care. As a
result, we now offer products and services that generate the highest customer satisfaction results. At Samsung Life,
we stand by our customers as a trusted lifelong partner.
•Combination life insurance: Insuring the whole family under a single policy With flexible benefits that cover
individuals from childbirth to retirement, this product offers comprehensive insurance coverage for every family
member. Samsung Life’s Perfect Combination Life Insurance, which we introduced in September 2008 – a first
in the industry – brings together whole life, critical illness (CI), and medical indemnity in a single insurance policy.
More than 1.27 million of these plans had been sold as of the end of April 2011.
Perfect Combination Life Insurance I 1.0 (non-participating): CI/LTC* living needs benefit rider whole life insurance
Perfect Combination Life Insurance II 1.0 (non-participating): floating interest rate/80-year term life insurance
Combination Universal Whole Life 1.0 (non-participating): flexible planning of benefits depending on a customer’s age
* LTC: long-term care
•Health/CI Insurance: Risk protection Health/CI insurance offers a comprehensive lifetime of benefits, covering hospital bills, operations, therapeutic expenses, and long-term care expenses as well as other benefits in the
event of a critical illness such as cancer, cerebral concussion, cardiac disease, or liver disease. Samsung Life’s
Universal Living Care Whole Life 1.0 (non-participating) protects the whole family from risks throughout one’s
lifetime, with three major forms of coverage: family benefits, living needs benefits, and medical indemnities. This
single product also comes with a universal life insurance feature that allows people to draw their claims before
the policy matures on top of an additional payment of premiums. The Mother & Child Care Insurance 1.0 (nonparticipating) protects children from potential risks they may face at each stage of their growth, from conception
to adulthood.
•Whole life insurance: Lifetime coverage
Whole life insurance does not have a maturity date but instead remains in force for the duration of one’s lifetime. Thus, death benefits are paid out should the insured customer die
from illness or suffer from a serious illness as they age. All beneficiaries are guaranteed to receive benefits at least
once while still in possession of a policy. Samsung Life offers two main products of this type: Top Class Variable
Universal Whole Life Insurance, whose benefits can be custom-tailored to the needs of an individual (income-based
and benefit-based plans, for example), and Platinum Universal Whole Life Insurance, which is exclusively for affluent customers.
Services for
Social Responsibility
Socially responsible insurance products
Samsung Life was the first company in the industry to introduce an insurance warranty program and combination insurance policies. Our industry-leading product development capacity has been singled out by the
Korean Financial Supervisory Service as well as by several financial product award committees. This helps
us fulfill our social responsibility when developing insurance products for the less fortunate, such as low-income families and the disabled. In the future, we will develop socially responsible products as we continue
to enhance customer value.
Products for underprivileged children
Samsung Life launched its Delivering Hope & Love insurance pro-
gram specifically for underprivileged children. This product taps into dormant claims to cover underprivileged children who
are financially excluded and helplessly exposed to various risks. Since its launch in December 2008, these plans have created KRW 2.6 billion in new business, with a total of 2,283 policyholders.
Products for the disabled
Launched in 2001, the Gomduri Comprehensive Coverage Insurance plan protects
disabled customers from risks associated with accidents, damages, and diseases, giving them more peace of mind. In
34
2011, the premium income from this plan amounted to KRW 2.1 billion, with a total of 3,907 policyholders.
Customer Complaints Management System (CCMS)
Samsung Life has an established system that
provides all related guidelines for our employees in addressing customer complaints and responding to damage
claims. Our new customer complaints management system (CCMS) allows our staff to swiftly address customer
damage claims, which helps save the company money and enhances customer satisfaction. In recognition of these
achievements, the Korea Fair Trade Commission awarded us the CCMS certificate, a first among domestic insurers.
1 step Reception of customer complaint(s)/
suggestion(s)
2 step Assignment of the person in charge from
the related department(s)
3 step Contact by the person in charge
4 step Addressing the complaint(s)
5 step Feedback with results
Visiting our customers
In order to facilitate direct communication with customers, Samsung Life executives and managers have been paying visits to them since 2009. In 2010, senior staff from the company visited a
number of customers who had voiced a complaint about Samsung Life to hear from them directly. They also visited
customers who had completed their premium payments in recognition of their long-term loyalty to the company. In
October 2011, Vice Chairman and CEO Keun-hee Park also took part in this initiative, visiting customers who had
completed their premium payments in a gesture to express the company’s gratitude, while listening to their thoughts
about Samsung Life as well. The invaluable opinions and suggestions made by customers during these visits are
highly valued and reflected in future management policy revisions.
Socially responsible products
In addressing the nation’s low birthrate issue, Samsung Life is seeking solu-
tions to its social contribution activities through Sesalmaul. A new product called the Baby Angel Insurance plan was
launched in 2011 as part of the Sesalmaul initiative. This product covers a person’s entire labor expenses, from operations
that may be needed on the fetus to hospital bills.
Delivering Hope & Love Insurance performance
(as of the end of March 2011)
KRW
2.6
billion
Accumulated sales
(since Dec. 2008)
2,283
No. of policy holders
Gomduri Comprehensive Coverage
Insurance performance (as of the end of March 2011)
persons
KRW
2.1
billion
2011 premium income
3,907
persons
No. of policyholders
35
2.2
Going beyond customer satisfaction
Our customer care management practices go far beyond merely providing the best products
and services. Members of Samsung Life never stop communicating with our customers, listening to what they have to say, and taking the appropriate measures to deal with each issue.
This ensures we continue to satisfy our customers well beyond their expectations.
Customer-oriented services
Since 2008, Samsung Life has been sharing its customer service knowledge with business partners and local communities through a free training program called With Partners. In 2009,
we provided this training session to employees at the Beautiful Store and for members of the Korean Coast Guard.
Furthermore, our financial consultants visit customers in person to handle their claims and all related paperwork
firsthand, while our one-stop service hospital system provides enhanced customer convenience when someone
is making an insurance claim. In addition, Samsung Life’s website offers many different services, such as financial
management, market analysis, real estate news, important health information, and PC firewall services.
Customer feedback system
We are consistently upgrading the company’s customer service through
continued innovation at our call centers and through our Internet-based customer services. The customer complaint management system provides preventative responses that meet the highest global standards, while the VOC
program is yet another channel for gathering customer complaints, suggestions and demands, which are then reflected in our business activities. Furthermore, customers can make their suggestions and requests to Samsung Life
through an online and off-line panel program that is instrumental to improving our overall customer service.
Customer information protection
Every financial institution is obliged to practice the highest level
of customer information security. Dedicated to protecting and securing our customers’ information, Samsung Life
has established a team within the information strategy team and under the direct control of the CEO. This team is
dedicated solely to customer information security, making full use of digital rights management (DRM) which helps
screen e-mails on a real-time basis. All Samsung Life financial consultants and employees who handle customer
information as part of their everyday responsibilities are obliged to take customer information protection training
sessions at least twice a year. As a result of these efforts, we have had no violation cases related to customer information protection or the loss of customer data over the past three years.
A wide array of VIP services
Samsung Life reinforces its VIP
service quality on an ongoing basis. Since 2002, we have been operating
a financial planning center which offers comprehensive financial planning
services for our VIP customers, including asset investments, taxation, real
estate, succession & inheritance, and risk management. Our 365 home care
service provides Samsung Life VIP customers with phone-based or Internetbased health consulting services as well as free check-ups at major hospitals. We also e-mail VIP customers links to the company’s Wise Life webzine,
which is issued by the Samsung Economic Research Institute. This webzine
includes important economic and cultural news. Additionally, we send VIP
customers baby shower gifts, funeral items, anniversary presents, privileged
consulting and reservation services, and even invite customers’ children to
rescue dog training camps. In 2010, our Raume concierge service began offering customized services to our VIP customers that included deals on traveling abroad, shopping, cultural programs, and other unique services.
Differentiated services for corporate clients - Samsung Life Junior CEO program
Samsung Life has in place a Junior CEO program for our corporate clients, especially SME owners. The program
trains the offspring of SME owners as future CEOs. As of October 2011 we had completed two of these long-term
courses, with a total of 103 people in their 20s and 30s who are currently working for their parents’ companies benefitting from these classes. During the five-month course, the men and women received lectures on how to manage
companies in a global market, participated in field trips to Yongin Human Center, Samsung Life headquarters and
other Samsung affiliates. They also received overseas training in China and Japan.
36
From one-stop customer services to insurance consulting services
Samsung Life continues to develop a number of services to ensure customer convenience. Our Web & Call system, which allows financial consultants to provide customers with a full range of consulting services via the Internet, had a revolutionary
effect on insurance sales. We were the first company in Korea’s insurance industry to adopt a mobile device system
that enabled us to provide customers with optimal financial consulting services on the spot. We also introduced an
Internet-based insurance service through which customers can browse all of their account and product information
as well as buy insurance policies in a one-stop process online. In addition, we ensure customer convenience by
offering a specialized consulting service program in which our financial consultants make visits to customers in person to provide information on specific benefits and insurance policies that customers have purchased.
Samsung Life’s Service Claim Adjustment Subsidiary
Samsung Life launched a subsidiary called
Samsung Life Service Claim Adjustment, a new company that handles all customer services, including underwriting,
accident assessment, and the operation of our call center and website. The launch of the new company integrated
all the services that had been offered by three different companies into one. We expect this new subsidiary to reinforce Samsung Life’s expertise in underwriting, the operation of the call center and website, and mobile-based
customer communication channels, while also enhancing the quality of services we offer and the efficiency of the
overall work process.
Launch OF THE Samsung Life blog Samsung Life
launched its blog in December 2010 as a venue for online
communication with customers on a real-time basis. It offers diverse services in four different categories: Life, which
deals with real life stories from customers and employees
as working moms or early adopters; Living, which focuses
on personal stories from high-profile figures; Leisure, which
offers useful information about culture, travel, and sports;
and Love, which features stories from customers about their
loved ones as well as our own CSR stories. In addition, the
blog offers a mobile-based consulting service, while the
company’s official Twitter feed (@samsunglife) is another
channel for online communication with customers.
* Samsung Life blog L (www.samsunglifeblogs.com)
customer satisfaction
Topping several customer satisfaction surveys for the 8th straight year
In December 2011,
Samsung Life ranked first in the Korea Productivity Center’s 2011 National Customer Satisfaction Index (NCSI) survey for
the eighth consecutive year. Evaluating customer satisfaction with both products and services, the NCSI is one of the most
reliable customer satisfaction surveys in Korea and only goes to show that we enjoy unparalleled leadership in the market.
Still, we will remain relentless in our pursuit to earn the trust and respect of customers in the future.
37
03
EMPLOYEES & financial consultants
Growing together
Samsung Life supports all of its employees and financial consultants as they grow as experts in their
respective job fields. We also strive to create great workplaces based on mutual trust and
communication.
3.1 Promoting diversity
3.2 Achieving sustainable growth through competitive
compensation
3.3 Building a great workplace
3.4 Labor Management relations
Management Principles
Samsung Life has a zero-tolerance policy in place for discrimination in human resources management practices when recruiting
and retaining top talent. Our systematic education programs also
help employees realize their full potential, while customized training
courses help them build upon their competencies. In addition, we
increase numerous communication channels like labor-management council meetings on a regular basis and MBWA practices in
order to enhance greater understanding between labor and management.
Performances
As of the end of 2010, Samsung Life had 6,072 employees and
38,594 financial consultants. In fiscal 2010, the company hired 297
new employees. The number of financial consultants who have
worked for Samsung Life for more than 10 years stood at 8,825,
up 2.9 percent from 2009. In fiscal 2010, the per capita training
hours of Samsung Life employees stood at 142 hours, up 6 percent
from the previous year. As a result of our financial consultants and
customized education system, 75 percent of our financial consultants are authorized financial consultants. Furthermore, in proactive response to Korea’s low birthrate, we have several maternity
programs in place to improve the working conditions for our female
workers. In fiscal 2010, 94 percent of female workers who took maternity leave returned to work.
Our Goals
- Fostering globally competent talent
- Building a communicative workplace where people want to work
- Generous employee benefit programs for the health and welfare
of employees
38
30
142
94
72.3
8,825
hours
Per capita training hours
Rate of return after taking maternity leave
%
Percentage of employees holding financial
certificates (actuary, CFP, CFA, etc.)
%
persons
No. of financial consultants serving
for more than 10 years as of 2010
39
3.1
Promoting diversity
Samsung Life’s anti-discrimination policy ensures that all employees and financial consultants can realize their full potential.
Employment policy
Samsung Life’s fair human resource management policies focus on enhancing transparency with corporate governance. With a commitment to eliminating discrimination based on gender, age, religion, academic background and physical disability, we fully abide by the Korean Labor Standards Act and the ILO’s
Convention on Forced Labour. As a result, we strictly prohibit any discrimination in employment practices based on
gender, religion, race, or age. In compliance with the Korean Labor Standards Act and the ILO’s conventions on the
prohibition of child labor and abolition of forced labor, we strictly prohibit any form of child labor or forced labor at all
our business premises. To date, we have not once violated any of those related laws.
Total workforce
As of the end of 2010, there were 6,072 employees at Samsung Life, with the retirement
rate standing at 2.4 percent. To reduce the turnover rate, we introduced an insurance sales expert program and
applied a cumulative wage calculation program to provide our employees with more financial security. Today, the
starting salary for recent university graduates is 174.5 percent higher than the legal minimum, and we do not ever
differentiate one’s starting salary based on whether the person is male or female.
Employing minorities
Samsung Life has various programs in place to promote the employment of minorities, which has helped the company create a diverse workforce that supports equal opportunity for employment
within the organization. In fiscal 2010, we increased the quota for disabled females between the ages of 30 and 50
by more than 50 people nationally. During the regular recruitment process, we also give a 5-10 percent advantage to
candidates protected by the Korean Act on Veterans Affairs. In 2010, we hired 20 new employees in this category. In
the future, we will continue to expand our employment of patriots, veterans, and their bereaved family members.
Recruiting from local communities To promote balanced growth around the country, Samsung Life’s
yearly recruitment allots a 30 percent quota to candidates who live anywhere outside of Seoul. Upon being hired,
these employees greatly contribute to the company with their profound knowledge of and intimacy with their home
communities, promoting a connection between Samsung Life and their hometowns. Furthermore, our continuous
education programs allow them to grow as regional experts in addition to the knowledge they gain by fulfilling their
respective job duties.
financial consultant group organization
Samsung Life has the largest group of financial consultants in Korea. Our 38,000 highly skilled financial consultants have the knowledge and experience to serve the
varied needs of our individual and corporate clients. To ensure professional and efficient financial planning services
by target customers and sales channels, we classify our agents into six categories: Financial Consultants (FC), who
provide financial planning services to individual customers; Samsunglife Advisors (SA), who offer comprehensive
financial consulting services; Group Financial Consultants (GFC), who are insurance experts that serve corporate
customers; Financial Advisors (FA), who mainly sell variable universal insurance policies; Special Financial Planners
(SFPs), who are mostly young university graduates in their 20s and 30s; and Total Consultants (TC), who provide
financial services through telemarketing channels.
Workforce (Unit: persons)
Turnover rate & retirement rate (Unit: %)
3.6
● Turnover rate ● retirement rate
2.4
3.1
0.5
0.6
40
FY09
FY08
FY09
FY10
Total
6,472
6,409
6,072
Full-time employees
6,309
6,273
5,735
Female employees
3,187
3,182
2,996
348
269
297
New employees
0.9
FY08
Category
FY10
Achieving sustainable growth through
competitive compensation
3.2
Samsung Life strives to foster creative future leaders who are globally competent and possess profound expertise in the financial industry.
Human resource development programs
Samsung Life runs a number of education programs to
foster future leaders who will help the company grow globally into a leading financial company. Various education
programs are also in place to assist employees in obtaining certificates in the insurance, finance, and management
areas required for the professional fulfillment of their job duties, ensuring they remain successful financial planners.
Global top 15 life insurer by 2020
Creative innovation & new opportunities
Redefining business domains, enhancing core competencies, reforming the management system
SL4U: instilling a passion for lifelong education into the corporate culture
Ensuring unrivaled organizational competencies
SL-iMBA
mandatory entry-level course
Enhancing the capability to
implement strategies
SL-ProWay
way job training course
Enhancing the company’s
corporate value
SL-Master
certificate preparation course
Securing future leaders
Basic knowledge in insurance, finance, and business
required to perform one’s job
as a financial planner
Fostering financial experts
with the job expertise required
to implement business strategies at each division level
Supporting employees to
acquire certificates and to
reinforce their competencies
Identifying and fostering
future leaders who will turn
the company into a leading
global company
SL-Leader
leadership course
Training programs
Training programs at Samsung Life consist of an entry-level course, a job training
course, and a global competency building course. The mandatory entry-level course teaches the basic knowledge
and competencies required to be a Samsung Life employee, while the job training course focuses on developing the
skills and job competencies needed for each job position. The global competency building course helps employees
develop foreign language skills and their understanding of foreign cultures.
Education programs for the career development of financial planners
Fostering successful financial planners takes continuous and systematic education from an employee’s first year with the company. In addition to the entry-level programs, which differ depending on the needs of each individual employee, Samsung Life provides financial certification courses such as variable insurance sales authorization, Associate Financial
Planner Korea (AFPK), Certified Financial Planner (CFP), and online taxation courses. As a result, roughly 75 percent
of our financial consultants are authorized financial consultants. Under a vision to foster customized specialists
who can meet every customer’s needs, we take part in the Jungang-Samsung Insurance MBA program, the EwhaSamsung Academy, and other academic programs in collaboration with universities.
Samsung Life financial consultant education program specialist course
Level 1
Second year at the company
Level 2
Third to fourth year at the company
Advanced FC
Fifth year at the company
Sales skills: reminding FCs about
concept sales/needs
Advanced sales skills: storytelling/
presentation skills
Marketing skills: a differentiated approach by customer class/type
VIP consulting: reminding FCs about
the need for affluent customers/seminar marketing success stories
Heightened sense of culture and
common sense: appreciation for
long-term service with the company/
motivation/culture courses
Financial planning skills: succession/real estate/financial investments
U-SMART: basic economics/trends/
taxes and insurance
Retirement planning: retirement
fund calculation/case studies of
retirement planning by different customer categories
41
Training performance
Samsung Life offers career development programs (CDP) customized to the different capabilities of each employee. In addition to programs designed to reinforce job competencies, we support
all the expenses an employee incurs when preparing to attain a financial certificate, including the application fees,
textbook costs, and tuition. The class-based leadership program was established in line with a proven leadership
competency model that fosters future leaders. In 2010, per capita training hours for Samsung Life employees stood
at 142 hours, up eight hours from the previous year.
Fair evaluations Samsung Life runs performance reviews and career development performance reviews for
its entire workforce on a regular basis. The performance review looks at on-the-job accomplishments and job competencies. First, we assess the individual targets in line with their team goals to accurately evaluate individual accomplishments. The competency assessment review then checks the requirements needed for each individual job
description. In order to ensure a fair performance review, we run three-stage interviews, personally notifying each
employee of the review results. We also run evaluator training and have appeal channels in place if an employee
disagrees with their performance evaluation results.
Employee education program (2011)
Strategic program
Team leader program
Sales manager program
Others
Sungkyunkwan University
Insurance Finance
Creating a new vision for
growth for insurance sales
agents, master’s degrees
and certified financial planner
(CFP) certification
Department Manager leadership
Leadership program for future
leaders, enhancing management skills and leadership,
basic tasks/job/leadership,
strategic/marketing/HR
Regional headquarters head
course
Regional headquarters course
(HRM), leadership and strategy building skills
Ewha W Leadership
Competency building and job
competency building, finance,
marketing, leadership and
humanities
Master of actuarial practice
Specialty in actuaries, global
competency building, master
of actuaries (mathematics)
Deputy Manager leadership
Global Frontier
Global Player internship
program in collaboration with
foreign companies
Reinforcing leadership of deputy managers, organization/
performance management,
global mindset
Manager/Assistant Manager
leadership
Customized education for
leadership building, functional
leadership course for managers, self-leadership course for
assistant managers
Branch manager course
Staff/field experience/female
branch manager course, Financial/branch management
practices/leadership module
programs
Branch Manager College
Fostering sales managers, I-IV
courses by target and service
years, Financial-Branch management module
Per capita training hours (Unit: hours)
150
142
140
136
134
130
FY08
FY09
FY10
* Samsung Life insurance finance-oriented MBA degree graduation
(August 2011)
Career Development
Graduation of new insurance MBA holders
On August 25, 2011, 20 Samsung Life employees graduated
from Korea’s first insurance finance-oriented MBA as part of our academic-industrial partnership with Sungkyunkwan University. After selecting 20 sales managers in January 2009, they began their MBA studies at Sungkyunkwan University. For
18 months, they completed both basic and advanced courses on financial systems, advanced financial engineering, and
other insurance and finance courses. Most of the graduates also acquired the certified financial planner (CFP) certificate,
giving them more profound expertise in their particular job area. Through this MBA program, Samsung Life plans to foster
42
more than 150 professional financial experts by 2015.
3.3
Building a great workplace
Samsung Life dedicates much of its time, effort and resources into creating a great workplace with a wide range of employee benefit programs, retirement planning programs, and
maternity protection programs.
Employee benefits
In order to guarantee that all of our employees realize their full potential free from any
concerns in their personal life, Samsung Life offers financial and other forms of support for their housing, leisure, and
health. We also operate a mileage program that allows employees to decide how they redeem their points.
Retirement planning program Samsung Life assists employees in their retirement planning. Since 2009,
the Career Development Center (CDC) has been an in-house organization that supports company retirees who are
starting a new business or pursuing a new career. Over the last two years, the CDC has helped 160 retirees establish a new career, while maintaining friendly relations with them afterwards. The CDC provides retirees-to-be with
consulting services on their retirement planning and useful information about starting a company, such as pointing
them towards the Senior Business Start-up School, which is run by the Small and Medium Business Administration
(SMBA). Additionally, Samsung Life has a corporate pension plan for retirees that is available as one of two different
defined benefit-based (DB) and defined contribution-based (DC) plans.
Welfare benefits
Cafeteria plan
Self-development
Buying books on
economics and management, acquiring
certificates, learning
foreign languages
Healthcare
Medical expenses, gym
costs
Health management
Financial security
Medical expenses
Providing full medical
coverage for employees and their spouses
Private pension plans
Group insurance
policy
Covering death, illness,
and hospital bills
Housing expenses
Others
Housing loans, rent
loans, and corporate
housing for employees
working outside of
Seoul
Leisure facilities
(waterparks/timeshare
condominiums/ski
resorts) supporting
memberships to gyms/
community centers,
tuition for children,
anniversary gifts, congratulatory/condolence
allowances, club activity
support, subsidies to
four major public insurance premiums (National Pension, Health
Insurance, Industrial
Accident Compensation
Insurance, Employment
Insurance)
Check-ups
Total or partial checkups
Culture
Shows, musicals,
plays, performances,
theme parks, timeshare
condominiums
Compensation and support for financial consultants
Samsung Life financial consultants are
bringing about a better future with clear goals through successful self-management. Samsung Life offers fair compensation to our financial consultants in proportion to their contribution at enhancing customer value. The annual
Samsung Life Awards single out financial consultants who have demonstrated a high level of performance in sales
and work efficiency, rewarding them with incentives and overseas trips. In addition, benefit programs for financial
consultants include culture classes, health check-ups, scholarships, childcare subsidies, industrial accident insurance
and allowances for special or irregular events. As a result, 32 percent of our financial consultants have been with us
for more than 10 years. Going forward, we will continue to expand our financial consultants benefit programs.
financial consultants monthly income distribution chart
As of the end of December 2011 (Unit: KRW 10 thousand)
1,800
1,528
1,500
1,200
900
600
617
234
Challengers
300
422
Leaders
Pros
Super and higher
* Samsung Life Annual Awards
43
Maternity protection programs
Samsung Life has various maternity protection programs to address
Korea’s low birthrate and to also help improve working conditions for female employees. We have introduced threeday paid paternity leaves, one-hour paid leaves per day for feeding for new mothers, and allow employees to go on
split maternity leaves. In October 2011, we opened a maternity center to ensure improved working conditions for
pregnant employees. Furthermore, we ensure that employees are not subject to any disadvantages in their job security, wage schemes, or career path when they return from maternity leave.
Club activities
At Samsung Life, we encourage employee club activities because we believe that hobbies
and cultural activities instill a sound mind and a teamwork attitude in employees. At the moment, there are roughly
140 clubs at Samsung Life, with 3,600 employees, or 58% of our entire workforce, participating in choirs, dance
and singing groups, and various other activities.
Safety at work Samsung Life does as much as it can to ensure the safety and health of our employees. The
company’s Labor-Management Council and collective bargaining agreement serve to keep management in check in
terms of the fair practice of business activities. In promotion of employees’ health, we offer annual check-ups and
regular safety & health training. At the same time, we continue improving working conditions at all of our workplaces
and run various in-house drills and campaigns to help employees lead healthier work-life balanced lives. As a result,
we have had no cases of occupational accidents for the last three years.
FY08
* Samsung Life chorus club
FY10
FY08
84.1
FY09
89.3
Rate of working more than 12 months
after coming back (i.e. retention rate)
93.7
Rate of return after maternity leave
93.4
(Unit: % )
98.9
Percentage of female workers returning from maternity leave
FY09
98.1
Handling of grievances
Samsung Life has a separate employee process to handle grievances under the
company’s governing regulations and its bylaws on the operation of the Labor-Management Council. In addition
to an internal whistle blowing system, our Open Your Mind system processes employee grievances. At Samsung
Life, we are dedicated to improving working conditions and to addressing the work issues of individual employees.
Through an established communication channel, we continue to check and improve working conditions objectively
and practically.
FY10
* Samsung Life’s maternity center opened in October 2011
humanities café
Humanities Cafe
In June 2011, Samsung Life launched an online and off-line course for employees and financial
consultants called Humanities Cafe. With the intent to help employees deepen their knowledge of people and insurance
through lectures on the humanities, the program offers lectures by qualified experts once a month at the head office building. The first session was on the subject of love as an inspiring theme for the French painter Marc Chagall by Bae Chulhyun, a professor of religious studies at Seoul National University. In July, the noted Korean classical music commenter Lee
Ji-hye gave a talk on the subject of stories and music. In August, movie critic Shim Young-seop talked about film psychology. In addition to all of this, employees and financial consultants can access online classes on Chinese-related subjects
such as Confucius’s Analects and The Shiji (“Records of the Grand Historian”), an enormous history of China's dynastic
44
empires written by the scholars Sima Tan and his son Sima Qian.
3.4
Labor Management relations
Samsung Life instills autonomy and harmony in its corporate culture through a trust-based
labor-management relationship and honest communication.
Promoting labor-management communication
Through honest communication, Samsung Life
strives to reinforce constructive, trust-based labor-management relations. While promoting a solid partnership
and mutual understanding, labor and management cooperate in various ways, such as carrying out joint research
to improve working conditions. In addition to the biannual collective bargaining and annual wage talks, labor and
management hold quarterly meetings to deal with major labor issues that include employment, safety and wages.
When management intends to introduce a new policy or make changes that could affect working conditions, it first
consults with the labor union and reflects its opinion in the final policy. Furthermore, management takes the labor
union’s opinions into account on major business issues concerning the company, with senior executives from the
labor union actively involved in these collaborative meetings.
Establishing cooperative labor-management practices
At Samsung Life, we believe that cooperative labor-management relations contribute to the sustainable growth of a company and to the job security
of its employees. Consequently, we are expanding labor-management communication channels as we continue to
respect each other’s opinions on major business issues.
Labor union Founded in 1962, Samsung Life’s labor union is committed to securing an effort to open communication between labor and management and to building a trust-based and harmonious labor-management relationship. As a result, we have remained free of any labor disputes since the labor union’s establishment.
* National Congress of Labor Unions (May 2011)
Labor union membership (Unit: persons)
2,369
1,738
2,358
3,587
4,004
4,053
● No. of employees eligible for membership ● No. of members
FY08
FY09
FY10
45
04
Corporate Social Responsibility
Connecting hearts
Samsung Life takes part in a number of different social contribution activities. We also lend our business acumen to such programs as the Sesalmaul and “Love in Us” Serotonin Drum Club programs.
4.1 Social contribution programs
4.2 Philanthropic education for future generations
4.3 Community engagement for the underprivileged
4.4 Culture and sports sponsorships
Management Principles
Samsung Life practices sharing management principles to ensure
a happier and healthier society for everyone. We were the first Korean insurer to launch a foundation meant to benefit the public, the
Samsung Life Public Welfare Foundation, in 1982. Under the motto
of “Love in Us” we offer diverse social contribution programs to address social issues concerning the youth, community development,
and environmental protection. In 1995, the in-house volunteer corps
was launched, allowing better organized company-wide volunteer
activities. In addition to volunteering, our employees also make
regular donations and contributions to social causes.
Performances
In 2010, 3,596 Samsung Life employees participated in various social contribution activities, with each employee serving an average
of 7.5 hours per year. At the same time, the company increased its
contribution to social programs to KRW 62.0 billion, far exceeding
the amount normally offered by similar-sized Korean companies.
Sesalmaul and the “Love in Us” Serotonin Drum Club are the most
recognizable programs that Samsung Life engages in. Our creative
and proactive commitment was recognized when we were awarded
the Presidential Prize at the 2011 Korea Volunteer Awards in December 2011, while also being named the CSR Company of the
Year by Insurance Review magazine.
Our Goals
- Expanding investments and the number of volunteers in social
contribution programs
- Diversifying social contribution programs and beneficiaries
- Promoting company-wide social contribution programs
46
3,596
62.0
7.2
KRW
persons
billion
%
Total number of volunteers
Total amount of donations
Social contribution expenses to earnings
after tax (FY 2007~2010 average)
Presidential prize
2011 Korea
volunteer awards
47
4.1
Social contribution programs
As a responsible corporate citizen, Samsung Life aims to remain a company that is respected
by its customers and the public, contributing to the development of the nation and society.
Diverse and systematic social contribution activities
Samsung Life lends its business knowhow as a life insurer to its social contribution practices. As a partner for life, we care about curing illnesses, and taking care of children and retirees, which is why we operate daycare centers, a medical center, and an upscale retirement home. Through the Samsung Life Public Welfare Foundation, we operate a total of 23 daycare centers across
the country. In addition, the Samsung Medical Center is one of Korea’s top medical centers, equipped with stateof-the-art technology and leading medical experts. In order to better serve the increasing number of older people in
Korean society, we launched Noble County in 2001, which includes housing tailored to the elderly on top of various
cultural, sports and leisure centers. Noble County makes retirement a pleasure with its upscale housing, advanced
medical services, outpatient care centers, and sports and culture facilities.
Social contribution achievements In May 1982, Samsung Life became the first Korean insurance company to establish a fund exclusively for the public through its Samsung Life Public Welfare Foundation. Thirteen years
later, in March 1995, the volunteer corps began engaging in more company-wide volunteer activities. At Samsung
Life, every employee is dedicated to caring for and serving the underprivileged, while contributing to the development
of communities and the nation as a whole. At the same time, we protect the environment and comply with all legally
mandated environmental regulations through our green management practices and ethical management principles.
Major programs
Dedicated to creating a happier society for everyone, Samsung Life is a leader in fulfilling
its corporate social responsibilities. Under the motto of “Love in Us” or caring for people around the world, we have
in place diverse social contribution programs to support future generations, local communities, and the environment. The Samsung Life Sesalmaul project addresses the country’s low birthrate and fosters creative future leaders,
while the “Love in Us” Serotonin Drum Club offers kids and teens a chance to play the drums. Through sisterhood
ties with farming villages, we support 112 rural areas across the nation. Also, as part of our global tree-planting project, we have planted 5,000 mangrove trees in Thailand to protect the country against future tsunamis and absorb
carbon dioxide from the atmosphere.
Basic principles of social contribution
Principle 1
Addressing social issues of high concern to the government and the public
Principle 2
Ensuring a sustainable future for the company
Principle 3
Building a brand image as a company that engages with communities
Principle 4
Establishing a new corporate culture where all employees and
financial consultants participate in social contribution activities
Social contribution strategies
“Love in Us”, sharing-oriented management
Children
Local communities
Environment
Samsung Life Sesalmaul,
Sisterhood ties with farming villages,
Volunteer programs, Sponsorship of
sports teams with disabled athletes
Global tree-planting initiatives, Green
volunteer corps, Green office
campaign
“Love in Us” Serotonin Drum Club
48
7.39
hours (calendar year)
Average employee volunteer hours
in 2010
7.2%
(FY2007-2010 average)
Social contribution expenses
to earnings after tax (EAT)
13.49
times
SLI’s social contribution expenses compared to the industry average in Korea*
*Source: Korea Life Insurance Association’s
2010 Corporate Citizenship Report
Organization
Devoted to bringing about a better world for people everywhere, Samsung Life runs the Samsung Life Public Welfare Foundation and an in-house CSR organization. We engage in social contribution activities
which deal with women’s issues, programs that ensure a more secure retirement, as well as activities dealing with
the environment and local communities. As a result, we have 240 volunteer corps across the country and a nationwide branch network that consists of 6,000 employees and 40,000 financial consultants. These individuals participate in volunteer activities at a number of welfare centers and charities in local communities around Korea. In addition, our employees and financial financial consultant contribute to Samsung Life’s Heart Fund every month, with
the money used to subsidize volunteer expenses and make donations to charities.
Funding for charities The main sources of funding for Samsung Life’s social contribution programs come
from employee and consultant donations through the Heart Fund, with each donation subsequently matched by the
company. Today, Samsung Life spends an average of more than six percent of its annual net profit every year, or
KRW 60-70 billion, on women’s issues and public welfare marketing campaigns, the largest amount spent by any
Korean life insurance company.
2010 major social contribution activities and results (Unit: KRW 100 million)
Education &
scholarships 232.6
Category
Major activities
Education &
Education and scholarship programs, youth
Communities 76.9
scholarships
art competition, youth financial education
Donations 88.4
Social welfare
Start-up subsidies to single mothers, support
for foreign wives visiting their home countries,
employee/consultant volunteer support
Total
620.2
Art & culture,
Sponsorship of sports, art & culture, and
sports
disabled sports teams
Donations
Life Insurance Public Welfare Foundation, Life
Insurance Association Fund, Special funds
Communities
Sisterhood ties with farming villages, living
subsidies to underprivileged children, troop
Art & culture,
sports 107.9
support
Social welfare 114.4
FY08
FY09
FY10
* Making Kimchi for love program with Samsung affiliate employees
FY08
FY09
178
178
196
196
198
198
299
299
320
320
● Matching ● Fundraising
305
financial consultant Heart Fund (Unit: KRW million)
● Matching ● Fundraising
305
Employee Heart Fund (Unit: KRW million)
FY10
* Samsung Life employee volunteer activities in the run-up to Chuseok
49
4.2
Philanthropic education for future
generations
In a bid to address the country’s low birthrate and youth-oriented issues, Samsung Life runs
Sesalmaul and the “Love in Us” Serotonin Drum Club. Samsung Life runs various education
programs for the youth of today, helping instill fundamental economic knowledge in them.
Community Movement for Infants, Toddlers and Their Families Inspired by the Korean saying
that what is learned by the age of three is taken to the grave, Sesalmaul was founded by Gacheon University President
Gil-ya Lee and former Korean Culture Minister Eo-ryoung Lee in 2009. As a community movement and research center
for infants, toddlers and their families, Sesalmaul runs a number of programs that show parents how to raise their toddlers and infants in ways that encourage happiness and creativity. Samsung Life also took part in this program in 2010
in a bid to deal with the nation’s low birthrate in partnership with the city of Seoul because we believe that the project
complements our business as a life insurer. We understand that cultivating good habits and developing one’s potential at the toddler and infant stage is crucial. Thus, we plan on investing a total of KRW 300 million by the end of 2011
for parental education, visits from Sesalmaul and Samsung Life employees, and gifts for newborn babies. We plan to
increase this amount to KRW 700 million by 2012 and to KRW 1.6 billion by 2013. Areas of the country to benefit from
this program will also be expanded to cover all six major Korean cities by 2013. As of the end of 2011, Samsung Life
had spent a total of KRW 300 million on parent education, subsidies and gifts for the birth of children. The company
plans to increase spending to KRW 700 million by 2012 and KRW 900 million by 2013. In addition, we will expand beneficiary areas from Seoul to six major cities by 2013.
“Love in Us” Serotonin Drum Club This program aims to inspire middle school students. The rhythmical
movements while playing the drum secretes the hormone serotonin in the human body in the human body, which
helps relieve stress. In addition, playing the drums in groups is an effective way to strengthen friendships. Members of
the club perform at charity concerts and national drum festivals, instilling a heightened sense of self-esteem in young
boys and girls. The program also provides aspiring musicians and those interested in classical music more opportunities to perform. On September 5, 2011, Samsung Life held a ceremony to officially launch the Seoul, Gyeonggi “Love
in Us” Serotonin Drum Clubs at Nanta Hall. Located near Hongik University, a mecca for musicians in the nation’s
capital, many high-profile figures from the arts and culture scene attended the ceremony. Present also were Samsung
Life Vice Chairman and CEO Keun-hee Park, Serotonin Center President Shi-hyung Lee, and the president of PMC
Productions, Seung-hwan Song who is also the producer of the hit Korean non-verbal musical Nanta. Following an exciting performance by the Nanta performers, we presented “Love in Us” Serotonin Drum Club sponsorship certificates
to 16 schools. By the end of 2011, we had already donated KRW 200 million won in drums to 42 schools and opened
clubs in six provinces as well as the Metropolitan Seoul area. By the end of 2012, we plan on sponsoring a total of
100 middle schools as we establish drum camps and festivals along the way. Furthermore, we will set up a drum club
mentoring program and a research center for youth.
* Samsung Life Sesalmaul door-to-door visits for new babies
* The Seoul, Gyeonggi “Love in Us” Serotonin Drum Club launch ceremony
Samsung Life social contribution project roadmap ● Public good ● Welfare
Prenatal
Infancy
Childhood
Elementary school
Sesalmaul
Repairing and renovating community childcare centers
Medical subsidies to children from low-income families (Mother’s Wish Lamp)
50
Finance classes for kids and teens Since 2003, Samsung Life has run economics classes designed to
impart economics knowledge to elementary school students in answer to the growing social demand for educating
today’s youth about finance. The classes, which are given in association with Junior Achievement (JA) Korea, focus
on instilling the proper background knowledge in children when it comes to economics and finance. Samsung Life
employees volunteer as teachers and give the classes three times per semester, for a total of five hours, after they
complete the necessary related training with JA Korea. This is just part of our commitment to have our employees
share their knowledge and skills as financial experts with communities. In 2010, we ran economics classes for 576
students at three elementary schools. In October 2009, Samsung Life joined the Youth Financial Class Network,
which is sponsored by the Financial Supervisory Service, in a bid to complement financial education at schools. Our
employees volunteer their time to teach financial classes on four main subjects. In 2010, we taught a total of 1,246
students from four elementary schools, one middle school and three high schools. A total of 1,246 students benefited from these classes.
700
977
1,822
No. of finance class volunteers for kids and teens (Unit: persons)
FY08
FY09
FY10
* Samsung Life financial classes for kids and teens
* The number of participants is calculated as the number of participants
taking part in JA Korea financial classes and the Youth Financial Class
Network
interview
Feedback from Financial Class Volunteers
“On July 7, 2011 I taught finance classes to students at Poongam Middle School on how to read economic indicators. During the classes, I was surprised to learn that many of the kids were knowledgeable about savings and sustainable consumption and how to read financial trends. I was surprised to learn that some of them had already invested in stocks, while others
said that they were interested in the savings and insurance policies their parents had taken out for them. I personally believe
in the importance of educating the youth of today about finance. In order to more efficiently help young people increase their
knowledge of finance, I think we need to establish a systematic curriculum to foster specialized instructors. From my own
personal experience, I found that the lecture plan was a bit difficult for students to understand. Thus, we need to develop
classes that are more engaging and easy to understand. Towards the end of the class, students were more immersed in
the class and were keen to ask questions when given the opportunity. It is my sincere hope that we can further expand the
scope of this financial education program in the future.”
Jin-ho Kim
Branch manager for the Western regional general agency (GA) & project manager for finance classes in the Mokpo area
Middle school
High school
University
Finance classes for kids and teens
“Love in Us” Serotonin Drum Club
Subsidizing volunteer clubs
51
4.3
Community Engagement
for the Underprivileged
In addition to social contribution activities, Samsung Life helps financially distressed people
through the Smile Microcredit Bank.
Supporting children from low-income families Samsung Life helps children from low-income families realize their dreams through such programs as the Mother’s Wish Lamp project, fixing community child centers
and subsidizing school uniform expenses.
•Renovating community childcare centers Samsung Life is a sponsor of the Community Childcare Center
project, which is helping to renovate 314 community childcare centers nationwide. In addition, we run programs
that help teachers increase their skills and improve community centers even more.
•Subsidizing school uniform expenses Samsung Life employees donate their employee benefit cafeteria mileage points to fund a program that provides school uniforms to middle and high school students who live in orphanages. We provided school uniforms to 83 teenagers in 2011.
•Samsung Life Mother’s Wish Lamp In cooperation with Save the Children Korea, Samsung Life launched the
Samsung Life Mother’s Wish Lamp project in 2007. Every month, two underprivileged sick children are given KRW
10 million each to cover medical and living expenses. Funded by employee donations, the project had helped a
total of 97 children up until August 2011.
* Donation of cafeteria mileage points to fund school uniforms
for underprivileged teenagers
* Samsung Life Mother’s Wish Lamp
Sponsoring the start-up of businesses run by single mothers Samsung Life runs a project to
help single mothers run their own businesses. Since 2002, we gave KRW 500 million annually to 20 single mothers.
In addition to financial assistance, we also support them with business management education, location scouting,
store set-up, and business consulting services. To date, we have sponsored a total of 230 new business start-ups.
* Samsung Life’s sponsorship of single mothers starting up their own businesses
52
Supporting foreign wives
Today, there are a growing number of people from other countries marrying
Koreans and choosing to live in Korea. However, they find themselves facing linguistic and cultural difficulties. While
it is natural for people to want to return home for a visit, many women who have married Korean men cannot afford the trip back. Due to time constraints and cost issues, many women who marry Korean men have not been
home since first arriving in Korea. This is why Samsung Life sponsors a program that helps foreign women make
the return trip to their home countries. Through the program, we pay for multicultural families to visit the wife’s home
country. We believe this helps contribute to raising mutual understanding and exchanges between cultures, while
also strengthening families and communities. In the future, we plan on initiating more programs that will enhance the
public’s recognition of challenges unique to multicultural families. We also provide foreign wives with education on
IT skills and schooling education for their children as well as job search and business start-up assistance through a
local network called Aida Village. We help increase skills and community activities for building self-dependence for
4,000 foreign wives and their children.
* Homecoming trip for Vietnamese wives
* Course completion ceremony for the foreign wife job training program
Caring for single seniors In collaboration with the Ministry of Health and Welfare, Samsung Life is taking
an active role in helping seniors who live alone. Our 300 call center workers call single seniors at least twice a week
to ask after their health. In the future, we plan on initiating programs where we will visit and sponsor single seniors.
* Samsung Life cares for single seniors
* Phone calls asking after the health of single seniors
ACTIVITIES for Senior
CITIZENS who Live Alone
Grocery shopping for seniors
Since 1995, Samsung Life employees have been grocery shopping for single
seniors living in Jung-gu, Seoul, the neighborhood around the company’s head office. Our employees call to ask after their
health and provide winter necessities to 2,000 single seniors who need our help the most.
53
Charity sponsorship and volunteering
Samsung Life began running community service activities
and social contribution projects in 1995. Since then, we have been volunteering to help the underprivileged through
185 charities across the nation. We provide a volunteer Braille transcription service, living necessities to the homeless, culture programs for kids and teenagers, and welfare programs for North Korean defectors.
* Summer camp for kids & teenagers
* Multicultural education for children through charities
Sisterhood activities with rural villages
Samsung Life supports environmental issues and rural villages that need help because of their small populations. Since 2006, we have formed sisterhood ties with villages and
provided a wide range of support. Our employees and financial consultants pay regular visits to these villages to assist
with farming, purchase produce from them (which we then donate to charities), and contribute to the economic development of these areas. In addition, we renovate community centers in these villages and hold parties for the elderly.
* Samsung Life volunteer activities in sister villages
Financial inclusion for the underprivileged Samsung Life participates in Miso finance microfiance
program* by extending loans to people with bad credit ratings, giving them the start-up funds they need for a small
business or working capital. Samsung Life has contributed at least KRW 7 billion every year since 2009 to the Samsung Smile Microcredit Bank to help the underprivileged.
* Miso finance is a Korean microfinance program providing financial services that allow the unbanked to become more financially independent without the
need for a co-signer or any collateral.
Samsung Life Miso finance microfinance program (Unit: KRW 100 million)
85
80
80
75
70
70
70
65
FY09
54
FY10
FY11
4.4
Culture and sports sponsorships
Samsung Life is helping make life better for everyone in society through its sports and art/
culture sponsorships.
Youth Art Competition
The Samsung Life Youth Art Competition celebrated its 30th anniversary in 2010.
As one of the nation’s largest art competitions for young people, the event has become a stepping stone for promising artists. Over the past 30 years, more than five million children have competed in this competition, and since
2009 winning artwork has been exhibited at Seoul’s Rodin Gallery.
Bichumi Women’s Awards
The Samsung Life Public Welfare Foundation launched the Bichumi Women’s
Awards in 2001. The awards recognize those who have contributed to the promotion of women’s rights and living
conditions in four categories: The Sun Prize is for contributions to the promotion of women’s position and rights
within society; the Moon Prize is for outstanding achievement in cultural, journalistic or social service areas; the Star
Prize is for advancements in the educational and R&D sectors; and the Special Prize is for any other outstanding
achievements.
Samsung Life sports teams
Samsung Life sponsors wrestling, women’s basketball and table tennis
teams. Launched in 1983, the Samsung Life wrestling team has contributed to enhancing Korea’s stature in international wrestling competitions, with many of our team members representing Korea in international competitions.
Since the 1988 Seoul Olympics, our team members have earned a total of 22 gold medals in the Olympics, Asian
Games and World Championships. Created in 1977, the Samsung Life women’s basketball team has become very
popular with local basketball fans. The Samsung Life men’s and women’s table tennis teams have produced numerous world-class players since 1999, winning a total of 10 Olympic gold medals in the Olympics, Asian Games and
World Championships. In the future, Samsung Life will continue to foster athletes at the highest level.
* Samsung Life table tennis team member Se-hyuk Joo
* Bichumi Women’s Awards
LIVE CONCERTS
Snow Concert series
Samsung Life launched its Snow
Concert series in October 2011. At noon every Thursday, the
“Love in Us” Plaza is transformed into a veritable concert hall
for indie musicians and bands. One such concert featured the
well-known brass band Kingston Rudieska. The Snow Concert
series embodies Samsung Life’s care for people and its commitment to support the arts. In the future, we plan on offering
more programs to support underground artists and musicians
both by providing performance venues and offering financial
assistance.
55
05
environment
Greening the world
Samsung Life practices green management as part of a green management master plan.
We do this not only because our stakeholders demand environmentally responsible management,
but also to enhance our long-term corporate value.
5.1 Green management overview
5.2 Green financial products
5.3 Green management activities
5.4 Green management performance
Management Principles
At Samsung Life, we practice green management not only because
our stakeholders demand environmentally responsible management, but also to enhance our long-term corporate value. To that
end, we have a master plan in place that includes green infrastructure, green businesses and green activities for the protection of the
environment.
Performances
Samsung Life has devised a master plan for company-wide green
management practices. In 2011, our paper use and electricity costs
declined from the previous year by 7.2 percent and 33.8 percent,
respectively, due to company-wide campaigns that among other
things encouraged people to use the stairs instead of elevators.
Employees were also asked to lower their electricity and paper
use, and to use mugs at the office rather than paper cups. In addition, we invested a total of KRW 237.4 billion in green businesses,
including renewable energy, power generation, and community
energy supply systems (CES).
Our GoalS
- Becoming a respected global leader as a green company by 2015
- Integrating green management into our corporate culture
- Expanding the number of green investment products
- Promoting our green office initiative
56
7.2
33.8
17.6
237.4
Rate of electricity use reduction compared
to the previous year (headquarters)
%
KRW
%
Rate of paper use reduction compared
to the previous year (company-wide)
%
Rate of water use reduction compared to
the previous year (headquarters)
billion
Total investment in the green industry
57
5.1
Green management overview
In response to rising global concerns over environmental issues and stricter international
regulations on GHG emissions, Samsung Life created a master plan to more effectively reduce GHG and conserve energy.
Green Infrastructure, Green Businesses, Green Activities
Samsung Life has developed a
master plan to ensure better organized green management practices. In 2011, we began putting together the basic
infrastructure required within the organization for effective green management practices. We mounted a companywide green office campaign that encouraged electronic documentation and paperless offices, while also drawing up
guidelines and established processes for socially responsible investments. This included coming up with the necessary criteria for investing in the renewable energy industry and pointing out how green businesses enjoy advantages
when we examine their credit rating. From 2012 on, we plan to further company-wide electronic documentation efforts and to turn Samsung Life office buildings into eco-friendly structures.
Incorporating green management into our corporate culture
While developing the necessary infrastructure for green management, Samsung Life is also incorporating green management into the corporate
culture and encouraging active employee participation. One example of this was asking employees to use mugs in
the office instead of disposable paper cups. In addition, employees are discouraged from using personal electric
devices such as heaters or fans, with paper towels made from recycled paper now used in our restrooms. Employees also painted the walls of stairwells to make them friendlier and more inviting. At the same time, employees
were encouraged to use the stairs when going up to three floors in either direction. Furthermore, we held a green
management contest for employees in which 300 innovative ideas were collected, with some of them having been
reflected in Samsung Life’s green management plans. Today, employees are even spreading the spirit of green management to local communities through green volunteer activities and other volunteer work. Every year, certain Samsung Life employees fly to Thailand to plant trees and carry out other green activities.
Green management vision
Becoming a respected global leader as a green company by 2015
Establishing an eco-friendly corporate image in 2012
Completing an electronic documentation system & renovating the old head office building into an eco-friendly one
Constructing green infrastructure & promoting green management in corporate culture in 2011
Promoting an electronic
documentation system
Green office initiative
Socially responsible investments
Green management master plan
Creating a green office
Developing SRI principles and processes
Promoting an e-contracting system
Employee/financial consultant volunteer activities
Expanding our e-documentation system
Increasing SRI products
Preparing for inclusion in the DJSI
Acquiring eco-labeling on new office buildings
& energy conservation efforts at older buildings
58
FY10
FY11
FY11
First half
Second half
Acquiring eco-labeling for new office buildings
Samsung Life plans to turn its old head office
building into a more eco-friendly one. After consulting with external experts on energy-saving facilities and how best
to reduce energy waste, we have decided to employ various eco-friendly technologies. As a result, the renovated
building is expected to reduce both our GHG emissions and electricity use, allowing us to file for eco-labeling of the
new office building. Regional governments are offering 5-15 percent deductions in acquisition & registration taxes
for eco-labeled buildings and refunds for 50-100 percent of all eco-labeling application fees. Completed in March
2011, Samsung Life’s Chungcheong Regional headquarters building in Daejeon spent KRW 59 million in the process
of earning eco-labeling status, but received a total of KRW 92 million in tax and application fee refunds. In the future,
we will continue to make sure that all of our new office buildings are eco-friendly and certifiably eco-labeled, which
will help save money and further our practice of green management.
Case Study: Employee survey on environmental awareness (on a 5-point scale)
We surveyed employee awareness of environmental issues after completing our master plan for green management. The
results showed that employees endorse the company’s reuse of wastewater and waste treatment efforts, but think
we need to improve our energy conservation activities and compliance with environmental regulations. Employee
suggestions and feedback will be fully reflected in our future plans when establishing green management practices
within the organization.
Surveys on internal stakeholder awareness of environmental issues (on a 5-point scale)
Respondents: employees
Energy
conservation
Subject: environmental performance
Medium: intranet
Period: Sep. ~ Oct. 2011
2.11
Water
recycling
& reuse
Minimization
of waste
and noise
2.48
2.24
2.20
2.01
Minimization of greenhouse gas and toxic
substance emissions
FY12
FY13
FY14
Compliance with
environmental
regulations
FY15
59
5.2
Green financial products
With rising concerns over the environment, renewable energy and other green businesses
are emerging as promising markets. In response to these market developments, Samsung
Life is preparing to make significant investments in green businesses, while expanding our
green finance product line-up, including SRI products and green loan products.
Developing SRI principles and processes
In promotion of socially responsible investment (SRI)
practices, Samsung Life developed a feasibility test framework and process for investment in the renewable energy
industry. Incorporated within the financial review system, both the framework and process have the ability to review
environmental and social policies at companies. As a result, Samsung Life was designated as co-lead manager and
financial advisor on an eco-friendly development project in Dongducheon worth KRW 1.3 trillion in July 2011. In the
future, we will continue to favor green business partners when calculating their credit ratings to further promote SRI
practices.
Investing in green businesses Samsung Life is increasing its brand image as an eco-friendly green company that incorporates social and environmental factors into its investments and industrial reviews. To start, we
offer corporate financing to renewable energy businesses. Furthermore, our corporate finance department invests
in a wide range of renewable energy businesses, including those in power generation, solar power generation, and
fuel cell projects. As of August 2011, we had entered into investment agreements worth a total of KRW 237.4 billion, mainly in renewable energy, power generation, and CES projects. Of this, a total of KRW 125.4 billion went to
renewable energy projects that included solar power, wind power, tidal power, and fuel cell projects. A total of KRW
92.0 billion was invested in various collective energy supply systems (CES) for urban districts and industrial complexes as well as urban district heating. The remaining KRW 20 billion was spent on contracts with conventional
power generation businesses. Furthermore, social and environmental factors have also been incorporated in the
non-financial performance review’s general ledger (GL) criteria, with green management practices included in the
evaluation of borrowers’ corporate governance.
Increasing the number of green finance products Samsung Life is increasing the number of SRI
products in green financing. In accordance with related local regulations, we began offering lower interest rate loans
in January 2012 in cases where eco-labeled buildings were used as collateral. In addition, we are planning to launch
a new loan product that offers lower interest rates to unsecured borrowers who work for green certified companies.
By offering special interest rate discounts to these individual and corporate clients, we continue to promote ecofriendly practices.
Renewable energy
52.8%
Conventional power
generation 8.4%
Collective energy supply systems 38.8%
5.7
%
2,374
Contract volume by year (Unit: KRW 100 million)
2,246
Green business investment agreements
2010 contracts
by industry
FY09
Renewable energy: solar/wind/tidal power generation, fuel cell projects
Conventional: LNG thermal/coal thermal/nuclear power generation
CES: industrial complexes, community heating
133
60
FY10
Green Management Activities
5.3
At Samsung Life, green management activities are put into action within a green corporate
culture. We encourage employees to participate in green management initiatives at work and
at home. In addition, we promote green management with our stakeholders through green
volunteer programs which include green volunteer corps activities.
Green office Samsung Life is engaged in a company-wide green office campaign that promotes energy conservation and environmental protection within the office. In order to reduce paper use, we have adopted an electronic
documentation system and added an electronic approval & reporting system on the company intranet to encourage
the use of our e-documentation system. After setting paper reduction goals in April 2011 by department, paper use
dropped by 210,000 sheets of paper over the previous month. We also encourage employees to use mugs at the
office instead of disposable paper cups. In promotion of this campaign, we handed out mugs to employees in June
2011. In addition, employees are now encouraged to take the stairs when possible, conserve water by being more
conscious about tap water pressure, and turning off their computers when leaving the office for more than an hour.
* Green office: energy conservation and environmental protection activities at the office
Stairs of Creativity At Samsung Life, employees are encouraged to use the stairs when going up or down
three floors or less. We have painted and decorated stairwell walls with murals of trees and set up speakers that
play healing sounds from nature as well as classical music. Also planted are sprays of phytoncide extract, which
help decrease people’s stress. Called the Stairs of Creativity and Meditation, the walls of the staircases are decorated with pictures and paintings that employees made themselves. With the help of our Life Care Research Center,
we have also erected signs that tell people how many calories they are burning by taking the stairs. The success of
these campaigns has attracted the attention of other companies, including Samsung Electronics, Everland, Samsung SDS, SKT, the Sejong Center for the Performing Arts, and the National Public Pension Fund.
Electronic documentation system
By 2015, Samsung Life will have established an e-documentation
system that will be the most common means of communication within the organization, while also significantly reducing paper use. In fact, we have already begun scanning all relevant documents at the company. We also aim to
replace paper mail with email as we aim to increase the number of customers receiving email to 330,000 people, or
10 percent of our 3.34 million customers who have email accounts.
* Entrance to the Stairs of Creativity at the Samsung Life building
* Murals and pictures on the walls inside the Samsung Life building staircase
* Global companies’ benchmarking of Samsung Life’s green management practices
61
Green activities & Green Volunteer Corps.
Samsung Life promotes green management initiatives
with our stakeholders through regular green volunteer activities. We have already expanded the scope of our volunteer activities from community services to environmental protection, and went one step further on July 25, 2011
when we launched the company’s Green Volunteer Corps. Made up of employees and financial consultants from
Samsung Life’s head office and seven regional headquarters, the Green Volunteer Corps improves environmental
conditions for underprivileged people living in rural areas.
Global green activities
In 2005, Thailand was devastated by a hugely destructive tsunami. Afterwards,
Thai officials and the UNEP mounted a campaign to plant mangrove trees as a means to protect the country from
future tsunamis, as mangrove trees have the ability to protect the shoreline from extreme waves. As part of this
campaign, Samsung Life sent a total of 80 volunteers in March and October 2010 to plant 5,000 mangrove trees in
and around Phetchaburi, Thailand. In March 2011, female employees from Samsung Life visited the same region to
plant more mangrove trees.
* Samsung Life Green Volunteer Corps
Caring for people, caring for forests
* Global green volunteer activities (creating mangrove forests in Thailand)
interview
“One way to deal with environmental issues arising from destroyed ecosystems and disturbed ecosystems due to climate
change is to plant more trees. In partnership with Samsung Life eight green volunteer corps units from its head office and
seven regional headquarters, Forests for Life is working to increase the number of forests outside urban areas. We have
helped remove harmful plants, restored damaged forest trails, planted trees, and mounted campaigns to teach the public
how to better protect the environment when hiking. Both Samsung Life and Forests for Life share the same goals – planting
trees together and sharing the benefits of forests with the world. Forests are a part of our lives. It takes time, effort and endurance to restore and protect life. It’s amazing to think that a tree so thick that a man can’t hug it with both arms came from
a seed. I personally hope that Samsung Life Green Volunteer Corps will be the one to sow the seeds for a better future.”
Yu-ri Kim,
General manager, Communications Department, Forests for Life
Our Green Story in Thailand
“Thailand became my second home after I visited the country in March 2011 as part of a volunteer initiative to plant trees. If
I’d been there on vacation, it would have been just another trip to a different culture as I took in the glamour and vitality of a
city like Bangkok. But what I saw in Phetchaburi, where I was planting trees, was devastating, a lifeless desert that stretched
out in front of me. It was only at an orientation before we started planting trees that I learned about the devastating tsunami
which had wrought such damage here and how important our efforts were. It was my first time planting mangrove trees.
I was so caught up wishing for a fast recovery for Phetchaburi and for the trees to grow quickly that I lost track of where I
was stepping, only to find myself stuck in some mud. The more I struggled, the deeper I sank. Fortunately, I soon figured out
how to deal with the mud. Planting trees with my colleagues helped unite us and bring about a sense of solidarity. Thailand
– and Phetchaburi in particular – has become a very special place for me now. My heart goes out to all those who suffered
in Phetchaburi. I’m from Jeju, an island that knows strong winds. My hometown has suffered from a number of storms and
typhoons over the years, most recently with Typhoon Nari. I lost a friend to Nari and saw firsthand how much damage the
typhoon caused to so many of my neighbors. That’s why I appreciate Samsung Life’s continued support of the area in and
around Phetchaburi and am proud to work for the company.”
Yun-sil Kang,
Western Regional Customer Service Center
62
5.4
Green Management Performance
Samsung Life has reduced its greenhouse gas emissions and its energy and water use
through various green management activities.
Reduction of greenhouse gas emissions
Electricity, heating oil and paper are Samsung Life’s main
sources of GHG emissions. Dedicated to reducing these emissions, we have established five green management
missions. In addition to the campaigns we run to promote the decreased use of electricity, we consistently maintain
the indoor temperature at lower than 25°C so we can lower our use of heating oil. Furthermore, we have expanded
the scope of GHG emissions control to the company-wide level for more effective environmental performance management. In 2012, we plan on joining the Carbon Disclosure Project (CDP) and receive third party assurance on our
GHG emissions and the measures we are taking to address climate change.
Five tasks for green management practices: Replacing paper cups with mugs, Reducing tap water use, Computerizing all documents, Turning off computer monitors and lights when
leaving the office, Using the stairs when going up or down three floors
Five green management tasks, expansion of environmental performance indicators,
joining the CDP
Our Efforts
Reducing paper and water use Samsung Life continuously endeavors to reduce its water and paper use.
Each team at the company keeps track of its monthly use of paper and fully discloses their numbers. At the same
time, employees are encouraged to reuse scrap paper and take advantage of e-documentation. Through these efforts, we expect to lower our paper use at the head office by half in 2011 compared to the previous year. In addition,
issuing policies on compact discs and through email newsletters will save the company about KRW 490 million and
560 tCO2e of GHG emissions per year. We also expect the new e-contract system to save us about KRW 3.01 million. Furthermore, we replaced the paper towels in restrooms with recycled toilet paper, which has saved us roughly
KRW 100 million and reduced our GHG emissions by 60 tCO2e. Encouraging employees to use a mug instead of
paper cups saves the company KRW 43.56 million and 43.6 tCO2e in GHG emissions per year. In addition, our Save
Water campaign helps us save 36,600 tons of water per year, or KRW 84.62 million annually. Compared to the previous year, water use increased in 2010 by 59,133m3, to 1,606,195m3, as a result of three new buildings currently being completed. In terms of water use with the gross floor area of all our buildings, the figure declined from 0.86m3 in
2009 to 0.83m3 in 2010. Moreover, we have all our wastewater treated at government-certified facilities.
Monthly disclosure of paper use by team, promoting the use of mugs,
campaign to save water
Our Efforts
Greenhouse gas emissions (Unit: tCO2e)
Paper & Water use
FY09
FY10
FY09
FY10
Scope 1
1,465.4
2,033.0
Total use of water
㎥
1,606,195
1,547,062
1,580,072
Scope 2
6,292.0
5,837.0
— Tap water
㎥
1,359,310 1,309,917 1,361,058
Total
7,757.4
7,870.0
— Recycled water
㎥
-
-
1,589
— Underground water ㎥
220,762
237,145
243,548
* Data applies only to the head office.
* See “Guidelines for National Greenhouse Gas Inventories and Energy
Target Management” for the data collecting benchmark.
* Scope 1 includes direct emissions of greenhouse gases from the use of
heating oil and fossil fuels, while Scope 2 covers all indirect emissions of
greenhouse gases from electricity use.
* GHG emissions increased in 2010 due to expanded gas expense subsidies to employees.
Unit
Water reuse
㎥
Total paper use
ton
FY08 3,094
3,166
3,351
1,117.9
1,749.9
1,159.7
* Data was collected from across the company.
* Total paper use includes all kinds of printed material, including insurance
policies, printing materials, envelopes, product marketing materials, application forms, contract forms, and more.
63
Recycling & waste
At Samsung Life, we classify waste into general and specified waste. The biggest thing
we discharge when it comes to waste is mostly waste paper, which amounts to 7,103 tons per year. Of this, 47 percent, or 3,344 tons, is recycled. Samsung Life is increasing the amount we invest in environmental expenses for the
safe and eco-friendly disposal of waste. In 2010, we spent KRW 3.2 million on handling waste and commissioned an
authorized external agency for handling this waste. As we are a financial institution, we do not generate any significantly hazardous materials.
Reusing scrap paper and paper reduction campaigns,
establishing a database of paper and waste handling
Our Efforts
Energy conservation At Samsung Life, our main source of energy is electricity and natural gas. As of 2010,
total energy use stood at 144,324 GJ (at our head office, electricity use was 112,671.0 GJ+ and natural gas use was
14,558.2 GJ). We have launched a number of campaigns to reduce our electricity use, one of which encourages
people to use the stairs when moving up to three floors in either direction. At the same time, we discourage the use
of personal electric devices at the office such as heaters, fans or humidifiers. Additionally, employees are encouraged to turn off their computers when they leave the office for more than an hour. Lights are turned off throughout
our offices and buildings during the lunch hour, with the last person leaving the office obliged to check if devices
such as printers, photocopiers and paper shredders have been turned off. Through these and other efforts, we reduced our electricity use by 274.4 GJ at the head office building in 2010, though the use of natural gas increased
slightly as a result of a new gym and communication center we opened that same year inside the head office building. Although employees are advised to use public transportation when commuting for environmental reasons, the
total amount of gas we used in 2010 increased due to the fact that Samsung Life expanded the number of people
who could benefit from gas subsidies for their vehicles. In the future, we plan to reduce the amount of gas we subsidize by replacing office vehicles with hybrids. While continuing our energy-saving activities, we will soon expand the
reporting scope of energy use to the company-wide level.
Using the stairs for short trips between floors, turning off computers when leaving the
office, encouraging people to wait for others inside elevators
Our Efforts
Waste emission (Unit: ton)
Energy use (Unit: GJ)
FY08
Wastes
Specified
Total wastes
FY09
FY10
3,094
3,165 3,344
— Outsourcing
3,089
3,385 3,618
— Subtotal
6,183
6,550 6,962
— Recycling
— Natural gas
FY09
FY10
12,400.5
14,558.2
— Diesel
Transportation — Gasoline
0
1
7
— Outsourcing
114
132
134
Indirect
— Subtotal
114
133
141
Total
6,297
6,683
7,103
— Recycling
* Data was collected from across the company.
* General waste: all types of solid and liquid waste (except wastewater)
* Specified waste: any industrial waste that can pollute the environment or
cause harm to the human body
* Total waste emissions increased due to a growth in sales and the resultant increase in employees
64
Heating
12,332.8
3,979.0
4,762.2
121,455.0
112,671.0
144,598.6
144,324.2
— Diesel
— Electricity
37.9
6,726.1
* Data covers only the head office building.
* 1 GJ (Giga Joule) = 1 billion J (Joule)
06
Appendix
Financial statements summary
Awards and recognitions
Third party assurance statement
GRI declaration
GRI G3.1 index
Glossary
Membership
65
Financial statements Summary
Balance sheets
(Unit: KRW million)
Account
Assets
FY2010
FY2009
4,466,756
3,544,742
Securities
84,790,273
74,086,845
Loans
24,200,855
24,530,227
Cash and deposits
Investment properties
Tangible assets
Intangible assets
Other assets
Special account assets
Total assets
Liabilities and
shareholder equity
Policy reserves
Policyholders’ equity adjustment
Other liabilities
719,900
725,924
4,541,709
4,397,673
105,543
86,416
6,061,632
6,136,865
21,466,951
19,536,381
146,353,619
133,045,073
99,133,436
92,024,918
5,213,859
4,739,855
4,972,057
4,510,073
Separate account liabilities
21,644,287
19,637,407
Equity capital
15,389,980
12,132,820
146,353,619
133,045,073
Total liabilities
Samsung Life FY2010 assets, liabilities and shareholder equity
(Unit: KRW million)
Policy reserves
99,133,436
Securities 84,790,273
Cash and deposits 4,466,756
Equity capital
15,389,980
Special account assets 21,466,951
Other assets 6,061,632
Assets
146,353,619
Intangible assets 105,543
Tangible assets 4,541,709
Investment
properties 719,900
Loans 24,200,855
Liabilities and
shareholder equity
146,353,619
Separate account
liabilities 21,644,287
Other liabilities
4,972,057
Policyholders’ equity
adjustment 5,213,859
66
Income statements
(Unit: KRW million)
Account
FY2010
FY2009
1,670,996
-335,822
(Operating revenue)
14,850,672
14,774,646
(Operating expenses)
13,179,676
15,110,468
Investment income
6,982,342
5,501,400
(Investment operating revenue)
7,817,716
7,004,119
835,374
1,502,719
7,009,441
4,485,012
1,643,897
680,566
965,744
488,352
1,105,558
587,544
139,814
99,192
2,609,641
1,168,918
684,788
262,823
1,924,853
906,095
Insurance income
(Investment operating expenses)
Policy reserve provisions (Δ)
Operating income
Non-operating
Non-operating income
(Non-operating revenue)
(Non-operating expenses)
Net income before income tax
Income tax expenses
Net income
Net income (Unit: KRW million)
Investment income (Unit: KRW million)
26.9
1,670,996
1,924,853
%
%
906,095
FY09
FY10
FY09
FY10
FY09
FY10
-335,822
112.4
Insurance income (Unit: KRW million)
6,982,342
Investment
5,501,400
Insurance
67
Financial statements Summary
Profitability index
(Unit: KRW 100 million, %, %point)
Account
FY2010
FY2009
change
Net income (or net loss)
19,249
9,061
10,188
Operating profit margin
8.49
4.39
4.10
84.29
85.34
-1.05
Investment yield
6.38
5.48
0.90
Return on assets (ROA)
1.38
0.71
0.67
Return on equity (ROE)
13.99
9.26
4.73
Loss ratio
* Net income for FY 2010 rose due to an increase in loan loss provisions and the gain on sale of securities.
* Increased net income also resulted in year-on-year growth in ROA and ROE.
Capital adequacy ratio
(Unit: KRW 100 million, %, %point)
FY2010
FY2009
change
1,000
1,000
-
Capital stock
Capital surplus
Retained earnings
Capital adjustment
Accumulated other comprehensive income
Operating RBC
Operating profit margin (Unit: %)
61
61
-
78,092
60,779
17,313
135
-
135
74,612
59,488
15,124
332
280
52
Return on assets (ROA) (Unit: %)
4.1
0.67
4.73
%p
%p
FY09
68
9.26
0.71
4.39
1.38
8.49
%p
Return on equity (ROE) (Unit: %)
13.99
Account
FY10
FY09
FY10
FY09
FY10
Management efficiency index
(Unit: %, %point)
Account
New business ratio
Lapse & surrender ratio
Ratio of claims paid
Expense ratio
FY2010
FY2009
change
15.38
16.61
-1.23
9.29
9.72
-0.43
72.07
77.86
-5.79
7.10
6.34
0.76
Investment ratio
95.01
94.47
0.54
Investment yield
6.24
5.36
0.88
81.78
77.77
4.01
13th month persistency ratio
25th month persistency ratio
62.50
60.78
1.72
Customer service evaluation
2nd highest level (favorable grade)
2nd highest level (favorable grade)
-
AAA (NICE)
AAA (NICE)
-
Credit rating
FY2010 Customer service evaluation (2nd grade)
FY2010 credit rating (NICE)
Percentage of investment profits (Unit: %)
Percentage of business in force (Unit: %)
0.88
0.54
FY09
%p
6.24
5.36
%p
95.01
AAA
94.47
Favorable grade
FY10
FY09
FY10
69
Awards and Recognitions
Presidential prize at the 2011 Korea Volunteer Awards
Samsung Life received the presidential prize in the group category at the 2011 Korea Volunteer Awards in recognition of exemplary performance in social contribution activities over the last 17 years.
The company was given the award at a ceremony held at the Blue House on December 5, 2011. Held every year on Volunteers’ Day (December 5), the award singles out individuals and groups who contribute to the development of communities, handing out medals, presidential, prime ministerial and ministerial commendations according to their achievements. This year, in 2011, only two companies among
the 14 candidates were awarded a prize, with Samsung Life being one of them. In the future, Samsung Life will continue its social contribution activities on its way to becoming an even more respected company.
Korea’s first insurer to win Insurance Review’s CSR Company of the Year The first Korean insurer to win Insurance
Review magazine’s CSR Company of the Year Award. Samsung Life was awarded the CSR Company of the Year award at the Asia Insurance Industry Awards. Hosted by Asia Insurance Review magazine in Singapore in October 2011, we were the first Korean insurer to win
the prestigious award. Asia Insurance Review has been Asia’s most prominent insurance industry magazine for the past two decades. Subscribers to the magazine, which is printed in English and Chinese, include many leading multinational corporation CEOs, major investors,
and other financial insiders from Asian countries such as Korea, Singapore, Hong Kong, Thailand, China, and Japan, as well as those in
the U.S. and Europe. We were awarded the prize for playing a leading role in Korea’s financial services industry’s CSR movement. We were
also singled out for our efforts to align our programs with the needs of society through grassroots initiatives.
* Presidential prize at the Korea Volunteer Awards (Dec. 2011)
70
* Insurance Review magazine’s CSR Company of the Year (Oct. 2011)
Samsung Life has earned an excellent reputation for its top sustainability management performance that ensures high customer
satisfaction, outstanding brand management and active social contribution activities.
1st in the Korea Productivity Center’s 2011
National Customer Satisfaction Index (NCSI) for the 8th
straight year
The Korea Productivity Center (KPC) conducts surveys
on customer satisfaction with Korean companies, handing out awards for top performers in each industry every
year. For the last eight years in a row, Samsung Life has
topped the survey’s life insurance category.
jective review by a panel of experts. Samsung Life was
also inducted into the Korea Standards Association’s
Hall of Fame in 2010 for our customer-oriented service
management system and our outstanding achievements
in service quality innovation throughout the management system. Companies from any industry that win the
Grand Prix six times qualify for induction into the association’s Hall of Fame.
1st in the Korea Management Association Consulting’s
2011 Korean Customer Satisfaction Index (KCSI) for the
7th straight year
1st in the Korea Management Association Consulting’s
Most Admired Korean Companies for the 8th straight
year
The KCSI survey assesses customer satisfaction with
the products and services of Korean companies, providing awards for the best performers. Samsung Life has
ranked first in the survey’s life insurance category for
seven consecutive years.
Korea Management Association Consulting releases its
list of Most Admired Korean Companies every year, singling out those with outstanding business performance
results and continued innovation activities that increase
customer/shareholder/employee/social value, while also
being respected by the public. Samsung Life ranked atop
the life insurance category for the eighth straight year in
2010 and was named one of the list’s “All-stars” (one of
the top 30 companies).
1st in the Korea Standards Association’s 2011 Korea
Standard Service Quality Index (KS-SQI) for the 9th
straight year
The KS-SQI surveys customers in person and online to
evaluate the quality of services by industry, then hands
out awards for best practices. Samsung Life has sat
atop the ranking for nine straight years as a result of its
leading customer satisfaction services.
1st in the Korea Productivity Center’s 2011 National
Brand Competitiveness Index (NBCI)
The NBCI model is a national index sponsored by the
Korean Ministry of Knowledge Economy. The KPC
evaluates the brand competitiveness of products and
services manufactured and sold in Korea on a scale of
100 points. The first evaluation took place in 2003, and
up until 2011 Samsung Life ranked at the top of the life
insurance industry. We were also first in the insurance
sector of the NBCI.
1st in the Korea Management Association’s 2011 Korea
Brand Power Index
The K-BPI surveys customers’ brand recognition of and
loyalty to the products and services available in the Korean market. Samsung Life was named top company in the
life insurance industry in the 2011 K-BPI, the 13th year in
a row since the survey was first carried out in 1999.
1st in the Korea Standards Association’s Korea Service
Grand Prix for the 6th year & induction into the Hall of
Fame
The Korea Service Grand Prix singles out companies
that provide outstanding services through fair and ob-
Grand Prize recipient at the Herald Business Insurance
Awards
Herald Business, a leading Korean financial newspaper, hands out awards
every year to insurance companies and
their employees who contribute to the development and
advancement of the Korean insurance industry. Samsung
Life received the Grand Prize in 2010 for its outstanding
accomplishments in customer satisfaction service and
differentiated customer service.
International Rescue Dog Organization’s Service of Merit
medal
Samsung Life received the Service of Merit medal for
its contribution to breeding rescue dogs. Established in
1995, the My Dog & Samsung Center has been breeding
internationally certified rescue dogs for 911 rescue teams
and for select rescue activities overseas.
Acquisition of the BSI 25999 certificate for business
continuity planning (BCP)
In 2008, Samsung Life became the first Korean financial
institution to acquire the British Standards Institute’s BSI
25999 certificate for its BCP. Samsung Life was only the
world’s fourth company to obtain the certificate, and the
first one in the insurance industry. The BSI 25999 certificate verifies a company’s corporate crisis management
capabilities and its ability to continue core business
activities in the event of calamity or terrorist attack.
71
Third Party Assurance Statement
To Samsung Life Stakeholders,
The Korea Productivity Center (hereinafter the “Inspector”) was commissioned by Samsung Life to review its 2010 Sustainability
report (hereinafter the “Report”).
Accountability and Independence
Samsung Life
takes full responsibility for the information and comments contained within this Report. We are responsible for providing assurance statements. As an independent agency, we are not engaged
in producing the Report and have no relationship with Samsung
Life, which would otherwise hinder our independency.
Conclusion
The Inspector confirmed that Samsung Life’s
sustainability activities and performance were well reflected in
this Report. We also confirmed that the Report satisfied GRI application level A requirements, which Samsung Life independently
declared.
01 Inclusivity:
Assurance Standard
Our assurance is in accordance
with Type 1 moderate assurance engagement as defined by
AA1000AS (2008). We also verified if the Report conformed with
the principles of inclusivity, materiality, and responsiveness in relation to AA1000APS (2008) Assurance Standards. Furthermore,
we validated if reported materials complied with GRI (Global Reporting Initiative) G3.1 guidelines.
Scope
The scope of our responsibility did not include assuring the reliability of provided materials. Our on-site visits were
restricted to the Samsung Life head office in Seoul, and did not
include visits to domestic branches and agencies, customer care
centers or overseas worksites. Consequently, additional assurance procedures could alter the results of our assurance.
Approach
Our assurance procedures included the following work:
eviewing the selection of key issues and the propriety of the
R
described content contained within this Report through media
research and benchmarking analysis. In particular, issues covered by the media and legal action taken against Samsung Life
were reviewed by an internal audit team to confirm compliance
with all GRI indicators.
02 Reviewing
the frequency of the indicators and the description
method of each GRI G3.1 guideline indicator to check if GRI
application level A requirements were satisfied.
03 Identifying
if the content and quality comply with GRI G3.1
guideline principles.
04 Reviewing
the propriety of details and errors expressed in the
Report through comparative analysis with other sources.
05 Conducting
on-site visits to the head office in Seoul, identifying supporting key data and information, and reviewing internal
processes and systems.
01
72
Stakeholder participation
Samsung Life classifies its stakeholder groups as customers, shareholders, the government, employees, communities,
NGOs and the media. Through this assurance procedure, we
confirmed that Samsung Life consistently maintains diverse
communication channels to collect stakeholder opinions. In addition to online channels such as social network services and
a blog, the company maintains offline channels for direct communication between its top management and internal and external stakeholders. Customer feedback is also responded to in
a timely manner through a VOC management system. This effort to ensure high customer value is greatly appreciated. While
the company has expanded communication channels with employees through such activities as regular labor-management
council meetings and other meetings, it has also remained
active in various social contribution programs and engages
directly with local communities. We recommend the integrated
management of communication channels for the more effective
collection of stakeholder opinions and to upgrade all internal
and external channels for the more organized management of
these opinions.
02 Materiality: Selection and reporting of key issues
Samsung Life operates several communication channels to
identify sustainability issues. The company developed a list
that included a wide variety of issues related to its sustainability
management through industrial trend analysis, benchmarking of
global sustainability report indicators, surveys and interviews.
From this list, the company selected key issues through a materiality analysis according to the level of concern to stakeholders and their impact on business. We confirm that the Report
fairly discloses all key issues. In addition to key issues such as
customer information protection, employee education, labormanagement relations, social contribution, and job equality (including the employment of minorities), the Report fairly reveals
the company’s efforts with legal compliance, anti-corruption
and fair competition issues through such programs as business
ethics training and a company-wide compliance program (CP).
We recommend providing more detailed information regarding
the company’s legal countermeasure systems to improve the
balance of information provided in future versions of this report.
03 Responsiveness: The organization’s response to issues
We confirmed that Samsung Life has been conducting sustainability management practices under a management philosophy
that puts customer value and corporate social responsibility at
the top of its priority list. The company set the level of application for its first sustainability report at level A, fully revealing its
CSR endeavors through segmented key performance indicators (KPI) and various CSR programs. We acknowledge the
company’s efforts with sustainability management. From the
Report, we also learned how the company deals with key sustainability issues such as social contribution, business ethics
practices, and employee education. In addition, we appreciated
the company’s move to include sustainability management in
its business strategies. However, the company lacks a comprehensive strategy for the integrated management of its economic, environmental and social activities. It is our recommendation
that the company devise and disclose in future versions of this
report the strategies, plans and procedures necessary for the
comprehensive management of its KPI.
Recommendation We appreciate Samsung Life’s efforts to
enhance sustainability, and recommend the following to improve
upon future versions of this report and the level of sustainability
management.
recommend establishing a company-wide sustainability
management system for the comprehensive management of
economic, environmental and social issues, revealing all related activities and performance results in future versions of this
report.
02 We recommend managing various indicators to measure sustainability management performance in connection to financial
performance. This will help the company enhance the level of
its sustainability management.
03 We recommend a company-wide database for the management of environmental data such as its carbon footprint and
paper use to minimize errors in the database.
04 We recommend establishing an enterprise integration system
for the management of diverse sustainability management performance indicators, which it can then utilize in future versions
of this report.
The Korea Productivity Center’s Sustainability Management Center is
qualified to conduct independent assurance work as an assurance agency
officially certified by AccountAbility, which established the AA1000, an
international standard related to stakeholder participation and assurance.
Moreover, its Assurance Committee consists of professionals who have
completed a professional education and have experience in consulting
and sustainability management assurance.
December 2011
Chairman of the Korea Productivity Center
Hong Jin
Director,
Sustainability Management Center of KPC
Dong-soo Kim
Team manager
Ki-hwan Lee
Team manager
Yang-ho Lee
Researcher
Ju-mi Park
01 We
Researcher
Kwang-woong Choi
73
GRI Declaration
74
GRI G3.1 Index
●: Fully reported
Indicators GRI G3.1
Global
compact
◐ : Partially reported
Page
○: Not reported
N/A: Not applicable
Application note
level
1. Strategy and analysis
1.1
Statement from most senior decision-maker in organization
4~5
1.2
Description of key impacts, risks, and opportunities
2~3, 28~29
●
●
2. Organizational profile
2.1
Name of organization
Report Cover
2.2
Primary brands, products, and/or services
8~9, 34~35
2.3
Operational structure
11
2.4
Location of organization’s headquarters
Report Cover
2.5
Location of overseas branch offices and sites
6~7
2.6
Nature of ownership and legal form
6~7
2.7
Markets served
6~7
2.8
Scale of the reporting organization
66~67
2.9
Significant changes during reporting period regarding size, structure, or owneship
2~3
2.10
Awards received in reporting period
70~71
●
●
●
●
●
●
●
●
●
●
3. Report parameters
3.1
Reporting period (e.g., fiscal/calendar year) for information provided
Report Cover
●
3.2
Date of most recent previous report (if any)
-
N/A
First report
3.3
Reporting cycle (annual, biennial, etc.)
Report Cover
3.4
Contact point for questions regarding the report or its contents
Report Cover
3.5
Process for defining report content
16~17
3.6
Boundaries of report
Report Cover
3.7
State any specific limitations on the scope or boundary of report
Report Cover
●
●
●
●
●
Unrelated
3.8
Basis for reporting on comparability from period to period and/or between organizations
-
N/A
Unrelated
3.9
Data measurement techniques and bases of calculations for data, including performance index
-
N/A
First report
3.10
Explanation of the effects of & reasons for any re-statements of information provided
-
N/A
First report
in earlier reports
3.11
Significant changes from previous reporting periods applied in the report
-
N/A
3.12
Table identifying the location of the Standard Disclosures in the report
74~78
3.13
Policy and current practices with regard to seeking external assurances for the report
72~73
●
●
4. Governance
4.1
Governance of organization
10~11
4.2
Indicate whether the Chair of the highest governance body is also an executive officer
10~11
4.3
Number of members of highest governance body that are independent and/or non-executive
10~11
●
●
●
10~11, 45
●
members
4.4
Mechanisms for shareholders and employees to provide recommendations or directions
to highest governance body
4.5
Compensation for members of highest governance body, senior managers, and executives
10~11
4.6
Processes in place for highest governance body to ensure conflicts of interest are avoided
10~11
4.7
Process for determining the qualifications and expertise of the members of the highest
10~11
●
●
●
12, 23, 32~33,
●
governance body
4.8
Internally developed statements of mission or values, codes of conduct, and principles
41, 48, 58~59
4.9
Procedures of highest governance body for management of economic, environmental, and social
10~11
●
performances
4.10
Processes for evaluating highest governance body’s own performance
10~11
4.11
Whether and how the precautionary approach or principle is addressed by the organization
28~29
4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives
80
4.13
Membership in associations and/or national/international advocacy organizations
80
4.14
List of stakeholder groups engaged by the organization
14~19
●
●
●
●
●
4.15
Bases for identification and selection of stakeholders with whom to engage
14~19
◐
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and
14~19
◐
14~19
●
stakeholder group
4.17
Key topics and concerns raised through stakeholder engagement, and responses to them
75
●: Fully reported
Indicators GRI G3.1
Global
compact
◐ : Partially reported
Page
○: Not reported
N/A: Not applicable
Application note
level
Economic performance indicators
EC1
Direct economic value generated and distributed
24~25
EC2
Financial implications and other risks and opportunities for the organization’s activities due to
56~64
●
●
climate change
EC3
Coverage of the organization’s defined benefit plan obligations
43
EC4
Significant financial assistance received from government
-
N/A
No benefits received
EC5
Range of ratios of standard entry level wage compared to local minimum wage at significant
40
●
174.5%
-
N/A
Unrelated
●
●
●
◐
locations of operation
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations
of operation
EC7
Procedures for local hiring and proportion of senior management hired from the local community
40
EC8
Infrastructure investments and services provided primarily for public benefit
46~55
EC9
Understanding and describing significant indirect economic impacts
22~23, 46~64
Environmental performance indicators
EN1
Materials used by weight or volume
EN2
Percentage of materials used that are recycled input materials
EN3
Direct energy consumption by primary energy source
EN4
Indirect energy consumption by primary source
56~64
◐
EN5
Energy saved due to conservation and efficiency improvements
Principle8
56~64
EN6
Reductions in energy requirements as a result of energy-efficient- or renewable energy-based
Principle9
56~64
●
●
Principle8
56~64
56~64
Principle7
56~64
56~64
●
●
●
products and services
EN7
Indirect energy conservation businesses and achievements
EN8
Total water withdrawal by source
EN9
Water sources significantly affected by withdrawal of water
EN10
Percentage and total volume of water recycled and reused
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of Principle8
56~64
●
●
Principle8
-
N/A
Principle8
56~64
●
-
N/A
Unrelated
Unrelated
high biodiversity
EN12
Description of significant impacts of activities, products, and services on biodiversity
Principle8
-
N/A
Unrelated
EN13
Habitats protected or restored
Principle8
-
N/A
Unrelated
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
Principle8
-
N/A
Unrelated
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas
Principle8
-
N/A
Unrelated
56~64
affected by operations, by level of extinction risk
EN16
Total direct and indirect greenhouse gas emissions by weight
EN17
Other relevant indirect greenhouse gas emissions by weight
Principle9
56~64
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
Principle9
56~64
●
●
●
EN19
Emissions of ozone-depleting substances by weight
-
N/A
EN20
NOx, SOx, and other significant air emissions by type and weight
-
N/A
EN21
Total water discharge by quality and destination
56~64
EN22
Total weight of waste by type and disposal method
56~64
EN23
Total number and volume of significant spills
-
N/A
Unrelated
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms
-
N/A
Unrelated
of the Basel Convention Annex I, II, III, and VIII
EN25
Name of water bodies significantly affected by the reporting organization's discharges of water
Principle8
-
N/A
Unrelated
Principle8
56~64
●
Unrelated
◐
◐
and runoff
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact
mitigation
EN27
Percentage of products sold and their packaging materials that are reclaimed by category
Principle7
-
N/A
Unrelated
EN28
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance Principle8
-
●
No case of legal
with environmental laws and regulations
EN29
Significant environmental impacts of transporting products and other goods and materials used
Principle8
-
N/A
Principle8
56~64
●
violations
for the organization’s operations, and transporting members of the workforce
EN30
76
Total environmental protection expenditures and investments by type
Unrelated
●: Fully reported
Indicators GRI G3.1
Global
compact
◐ : Partially reported
Page
○: Not reported
N/A: Not applicable
Application note
level
Labor practices and decent work performance indicators
LA1
Total workforce by employment type, employment contract, and region
38~45
LA2
Total number and rate of employee turnover by age group, gender, and region
38~45
◐
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees,
38~45
●
38~45
-
●
●
60 days
-
N/A
No such committee
-
●
38~45
●
◐
by major operations
LA4
Percentage of employees covered by collective bargaining agreements
LA5
Minimum notice period(s) regarding operational changes
LA6
Percentage of total workforce represented in formal joint management worker-health and safety
Principle3
Principle3
exists
committees
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related
No case of injuries
fatalities
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce
members, their families, or community members
LA9
Health and safety topics covered in formal agreements with trade unions
38~45
●
LA10
Average hours of training per year per employee
38~45
◐
LA11
Programs for skills management and lifelong learning and assistance in managing career endings
38~45
◐
LA12
Percentage of employees receiving regular performance and career development reviews
Principle6
38~45
◐
LA13
Composition of governance bodies and breakdown of employees per category according to gender,
Principle6
38~45
●
Principle6
38~45
38~45
●
●
12~13, 26~27
◐
Principle3
All employees
age group, minority group membership, and other indicators of diversity
LA14
Ratio of basic salary of men to women by employee category
LA15
Return to work and retention rates after parental leave, by gender
Human rights performance indicators
HR1
Percentage and total number of significant investment agreements that include human rights clauses Principle2
or that have undergone human rights screening
HR2
Percentage of significant suppliers and contractors that have undergone screening on human rights
Principle2
12~13, 26~27
◐
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that Principle2
12~13, 38~45
●
●
●
are relevant to operations, including percentage of employees trained
HR4
Total number of incidents of discrimination and actions taken
Principle1
-
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining
Principle1
-
No cases of discrimination
Unrelated
may be at significant risk
HR6
Operations identified as having significant risk for incidents of child labor, and measures taken
Principle5
38~45
HR7
Operations identified as having significant risk for incidents of forced or labor, and measures taken
Principle4
38~45
HR8
Percentage of security personnel trained in the organization's policies or procedures concerning
Principle1
Principle2
-
●
●
●
100%
-
●
No case of infringement
12~13, 38~55
◐
12~13, 38~55
◐
46~55
●
human rights relevant to operations
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken
HR10
Percentage and total number of operations that have been subject to human rights reviews and/or
impact assessments
HR11
Number of grievances related to human rights filed, addressed and resolved through formal grievance
mechanisms
Society performance indicators
SO1
Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts
of operations on communities
SO2
Percentage and total number of business units analyzed for risks related to corruption
Principle10 -
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures
Principle10 12~13
SO4
Actions taken in response to incidents of corruption
SO5
Public policy positions and participation in public policy development and lobbying
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions
100%
Principle10 -
●
●
●
-
N/A
No cases of such participation
-
N/A
No cases of such partici-
Principle10 -
Three times
-
●
●
pation
by country
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices, and outcomes
SO8
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance
No cases of corruption
No case of injuries
with laws and regulations
SO9
Operations with significant potential or actual negative impacts on local communities
-
N/A
Unrelated
SO10
Prevention and mitigation measures implemented in operations with significant potential or actual
-
N/A
Unrelated
negative impacts on local communities
77
●: Fully reported
Indicators GRI G3.1
Global
compact
◐ : Partially reported
Page
○: Not reported
N/A: Not applicable
Application note
level
Product responsibility performance indicators
PR1
-
N/A
Unrelated
-
N/A
Unrelated
-
●
100%
28~29
●
31, 73
●
Programs for adherence to laws, standards, and voluntary codes related to marketing
12~13, 28~29,
●
communications
30~37
Total number of incidents of non-compliance with regulations and voluntary codes concerning
-
●
No case of legal violations
-
●
No cases of any complaints
Monetary value of significant fines for noncompliance with laws and regulations concerning the
12~13, 28~29,
◐
provision and use of products and services
30~37
Life cycle stages in which health and safety impacts of products and services are assessed, and
percentage of significant products and services categories subject to such procedures
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health
and safety impacts of products and services during their life cycle, by type of outcomes
PR3
Type of product and service information required by procedures, and percentage of significant
products and services subject to such information requirements
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning
product and service information and labeling
PR5
Practices related to customer satisfaction, including results of surveys measuring customer
satisfaction
PR6
PR7
marketing communications
PR8
Total number of substantiated complaints regarding breaches of easures customer privacy and losses
of customer data
PR9
Financial statement performance indicators
FS1
Policies with specific environmental and social components applied to business lines
20~29, 46~64
FS2
Procedures for assessing and screening environmental and social risks in business lines
28~29, 46~64
FS3
Processes for monitoring clients’ implementation of and compliance with environmental and social
20~29, 46~64
●
●
●
12~13, 38~45
●
20~29, 46~64
●
20~29
●
20~29, 46~64
●
20~29, 46~64
●
10~11
●
46~64
●
●
●
requirements included in agreements or transactions
FS4
Process(es) for improving staff competency to implement the environmental and social policies and
procedures as applied to business lines
FS5
Interactions with clients/investees/business partners regarding environmental and social risks and
opportunities
FS6
Percentage of the portfolio for business lines by specific region, size
(e.g. micro/SME/large) and by sector
FS7
Monetary value of products and services designed to deliver a specific social benefit for each
business line broken down by purpose
FS8
Monetary value of products and services designed to deliver a specific environmental benefit for each
business line broken down by purpose
FS9
Coverage and frequency of audits to assess implementation of environmental and social policies and
risk assessment procedures
FS10
Percentage and number of companies held in the institution’s portfolio with which the reporting
organization has interacted on environmental or social issues
FS11
Percentage of assets subject to positive and negative environmental or social screening
20~29, 46~64
FS12
Voting polic(ies) applied to environmental or social issues for shares over which the reporting
10~11
organization holds the right to vote shares or advises on voting
FS13
Access points in low-populated or economically disadvantaged areas by type
46~64
FS14
Initiatives to improve access to financial services for disadvantaged people
46~64
FS15
Policies for the fair design and sale of financial products and services
12~13, 20~29
FS16
Initiatives to enhance financial literacy by type of beneficiary
46~64
●
●
●
●
Samsung Life declares that its Sustainability Report meets all the requirements for application level A+ as stipulated in the GRI G3 Guidelines.
The report has also received approval and confirmation by a third party assurer that it meets the GRI’s Application Level Check for application
level A+ for GRI G3 (G3.1) Guidelines.
78
Glossary
Term
Definition
VaR (Value at Risk)
The maximum loss that could occur over a defined period of time with a specified level of statistical confidence
Policy reserves
The percentage of premiums that an insurer must set aside in reserve to pay claims and fulfill insurance contract obligations
Solvency margin ratio
An indicator of judging an insurer’s capability to pay claims as stipulated in Korea’s Regulation on Supervision of Insurance
Business guidelines
ALM
A technique companies employ when coordinating the management of assets and liabilities so that an adequate return may be
(Asset Liability Management)
earned
Exclusive rights
A form of patent render for financial products, meaning that only the entities holding exclusive rights can sell or provide said
product for a given period of time
DRM
A range of technologies that allow for the control of distribution and access to information, typically for rightful distribution of digital
(Digital Rights Management)
content on the Internet. Companies generally employ DRM to prevent illegal leakage of confidential and sensitive documents
CRM
A marketing strategy for managing a company’s trust-based human interaction with customers, clients and sales prospects, as
(Customer Relationship Management)
well as for the analysis of customer information to identify and satisfy customer needs, thereby enhancing customer loyalty and
sales profits
Guaranteed cost
The risk of loss arising from a shortage in policy reserves in the event of claims being made for the minimum guaranteed benefits
DB
A pension plan in which employee benefits are set by a predetermined formula, with the employer’s contribution varying depending
(Defined Benefit Retirement Pension)
on the amount of investment returns
DC
A pension plan in which the employer’s contribution is set by a predetermined formula, with employee benefits varying depending
(Defined Contribution Retirement
on the amount of investment returns
Pension)
AA1000AS
An international set of standards established by the non-profit organization AccountAbility which sets forth three major principles:
completeness, materiality and responsiveness
GRI
An independent non-profit organization that promotes economic, social and environmental sustainability. GRI provides all compa-
(Global Reporting Initiative)
nies and organizations with a comprehensive sustainability reporting framework that is widely used around the world
ISO26000
A guide for corporate social responsibility that provides seven major categories of reporting sustainability issues: corporate governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement and
development
UNGC
A strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally ac-
(United Nations Global Compact)
cepted principles in the areas of human rights, labor, the environment and anti-corruption
DJSI
Launched in 1999, the DJSI is the first global index to track the financial performance of leading sustainability-driven companies
(Dow Jones Sustainability Indexes)
worldwide. Based on the cooperation between Dow Jones Indexes and SAM (an investment boutique focused exclusively on sustainability investing), the DJSI provides asset managers with reliable and objective benchmarks to manage sustainability portfolios
EV (Embedded Value)
The present value of future profits plus adjusted net asset value
LBO
The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of the
(Leveraged Buyout)
acquisition
ABS
A financial security backed by a loan, lease, or receivables against assets other than real estate and mortgage-backed securities,
(Asset Backed Securities)
and usually classified into either senior bonds or subordinated bonds
Bancassurance
A term referring to the selling of insurance through a bank’s established distribution channels under a bilateral partnership between
banks and insurers
TM
A method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the
(Telemarketing)
phone or by other means, based on the purchase history of each individual consumer
CDP
An organized approach used to match employee goals with the business needs of the company in support of workforce develop-
(Career Development Program)
ment initiatives
SRI
An investment strategy that considers both financial returns and working for the social good, including human rights, the environ-
(Social Responsibility Investment)
ment, labor practices and community involvement
CDP
An independent not-for-profit organization holding the largest database of primary corporate climate change information in the
(Carbon Disclosure Project)
world. Thousands of organizations from across the world’s major economies measure and disclose their greenhouse gas emissions, water use and climate change strategies through CDP, which organizes a benchmark for investors to make financial and
policy decisions.
UNEP
A UN program providing leadership and encouraging partnership in caring for the environment by inspiring, informing, and enabling
(United Nations Environment Program)
nations and people to improve their quality of life without compromising that of future generations
NCSI
An economic indicator jointly developed by the Korea Productivity Center and the University of Michigan, NCSI measures cus-
(National Customer Satisfaction index )
tomer satisfaction in terms of products and services
79
Memberships
Organization
Function
Year of joining
Korea Life Insurers Association
The promotion of sound insurance business practices, exchange of useful information, and support of
1957
reasonable insurance policy development
Korean Insurance Academic Society
Surveys and research on insurance theories and business practices
1964
Federation of Korean Industries
A multifunctional association for Korean industries
1975
The Institute of Actuaries of Korea
The introduction of new insurance systems, seminars and exchanges of information and interchanges with
1975
the International Actuarial Association
Korea Economic Research Institute
A private economic research institute that contributes to the growth and development of Korea’s economy
1981
by helping entrench an efficient free market economy and the nurturing of healthy corporate growth
Korea Insurance Development Institute
Managing and investigating fair insurance ratemaking policies and developing top insurance products
1989
Fair Competition Federation
The promotion of fair competition practices and support of fair competition policy development
1995
Korea Risk Management Society
A chartered non-profit organization dedicated to advancing research, safe risk practice initiatives and safety 2000
management
FP Korea
An association of financial planners for the protection of consumers’ financial rights, financial security and
2000
the growth of household and research activities for the development of financial planning businesses
Korea Employers Federation (KEF)
Establishing harmonious industrial relations and providing HR- and labor-related information
Financial Information Security Association Cooperation with financial institutions and the Korea Financial Supervisory Service concerning policies to
2000
2002
protect customer information
Korea Financial Investment Association
The promotion of sound investment practices and a fair competition market, as well as helping to foster
2005
financial experts
Financial Security Agency
Checking, preventing and responding to hacker attacks made in the financial sector
2006
Korean Association for Insurance Law
A systematic approach to insurance law research to theoretically support the insurance industry
2006
Korea Insurance Research Institute (KIRI)
Promoting the sound development of the insurance industry through systematic research activities and offer-
2007
ing practical solutions to industrial issues
The Institute of Actuaries of Korea
80
Conducting research and survey activities on actuary theory, related regulations and industrial issues
2009
Key Performance Indicators
This sustainability report has been certified by the
Stakeholder
group
Management
Risks/Opportunities
Forest Stewardship Council (FSC), which promotes
Performance
Indexes
environmentally appropriate, socially beneficial and
906
1,925
112.4 ▲
forests. This report was printed with the use of soybean
Invested asset profit percentage (%)
5.5
6.4
16.4 ▲
oil, which reduces air pollution by minimizing toxic
15.3
23.2
51.6 ▲
emissions in the printing process.
RBC ratio (%)
280.4
332.0
18.4 ▲
Right selling rate (%)
99.57
99.68
0.1 ▲
New business
Trust account total assets
196.8
310.4
57.7 ▲
• Growing needs for global management and diversified sources of revenue
opportunities
(KRW billion)
• Customers are the very reason for Samsung Life’s existence
Customer satisfaction
National Customer Satisfaction Index
1
1
-
0
0
-
4.40
4.46
1.4 ▲
8,574
8,825
2.9 ▲
Operating ROE (%)
• Seek new business opportunities through the Retirement Research Center,
Risk management
Insurance & Finance Research Center and joint ventures in China and
Thailand
(NCSI) (rank)
• Inadequate customer service can lead to negative operational results
• Increase the importance of protecting customer information
• Eliminate forced labor in compliance with the Korea Labor Standards Act
Customer information
Individual information protection
protection
violation or customer data loss (cases)
Employment & diversity
Percentage of female managers to total
for more than 10 years (persons)
employees and financial consultants • Provide a healthy work and life balance through competitive fringe benefits
channel with our stakeholders, keeping everyone
• Respond to local needs for social contribution activities to improve
No. of training hours per person (hours)
134
142
6.0 ▲
Employee benefits & safety
Rate of return after maternity leave (%)
93.4
93.7
0.3 ▲
Social contribution
No. of volunteer hours per person (hours)
7.36
7.39
0.4 ▲
Value of social contribution
610
620
1.6 ▲
corporate values
performance, as well as our future plans. It will also
serve as a medium to reflect stakeholder opinions on
모바일 홈_지속경영가능보고서
Career development
(KRW 100 million)
• Separates the financial business from the general public due to the
our business activities.
코드URL : http://durl.me/qddbr
링크URL : http://m.samsunglife.com/main.jsp
CSR 박상호차장님
-
Reporting Period
Visit our website at
- Samsung Life’s fiscal year was from April 1, 2010 to
http://www.samsunglife.com/company_en/submain.html
complexity and diversity of financial services
- In some cases, data from the past three years was
also included to highlight certain trends.
CSR 박상호차장님
Commitment to green investment
Green finance
• Expand investments into green industries
Greenhouse gas reduction
Energy conservation
participation
2,374
5.7 ▲
7,757 3)
7,870 3)
1.5 ▲
-
(KRW 100 million)
• Convert worksites and office buildings into eco-friendly buildings
• Establish green management infrastructure and encourage employee
2,246
Greenhouse gas emissions (tCO2e)
Volume of energy use at head office
144,598.6
144,324.2
To see a copy of our annual report, visit our website at
http://www.samsunglife.com/company_en/ir/finance_ar.html
-0.2 ▼
building (total energy) (GJ)
Total volume of paper use (ton)
1,749.9
1,159.7
-33.8 ▼
reduction
Total volume of water use (ton)
78,884
65,037
-17.6 ▼
- Global headquarters, domestic branch network and
overseas subsidiaries, branches and representative
- Some environmental data covers only the activities
코드URL : http://durl.me/qddfd
링크URL : http://www.samsunglifeblogs.com/
at domestic places of business due to data collection
CSR 박상호차장님
-
1) Managers and leaders (branch managers and regional headquarter directors included)
2) Scope of environmental data: headquarters (greenhouse gas emissions, energy use, water use), company-wide (paper and water use)
3) GHG emissions increased in 2010 due to increased gas expense subsidies to employees.
Reporting Scope
offices
블로그_지속경영가능보고서
Paper & water use
March 31, 2011
- Some qualitative data coverage extends up to the
second half of 2011.
PC홈 연차보고서_지속경영가능보고서
코드URL : http://durl.me/qddj3
링크URL : http://www.samsunglife.com/company/ir/finance_ar.html
• Increase demands for financial inclusion
Environment
report. We intend to use this report as a communication
abreast of our sustainability management and
No. of financial consultants serving
• Offer diversified educational and career development programs for
2)
This is Samsung Life Insurance’s first sustainability
female workers 1) (%)
and ILO Conventions
Local
communities
Change (%)
Net income (KRW billion)
Financial
a first in Korea
Employees
& financial
consultants
2010
economically viable management of the world’s
• Aging society and investors prefer tangible assets over financial assets
• Prepare Business Continuity Planning (BCP) and receive BSI certification,
Customers
2009
Visit our blog at
www.samsunglifeblogs.com
issues.
Reporting Standards
This report was compiled in line with the Global
Reporting Initiative (GRI) G3.1 Guidelines and the
트위터_지속가능보고서
Financial Services Sector Supplement (pages 75 to 78).
코드URL : http://durl.me/qddhe
링크URL : https://twitter.com/#!/samsunglife
CSR 박상호차장님
-
Future reports
E
The nature of our business lends itself to corporate social
responsibility and customer satisfaction, as well as a
fiduciary duty to protect customer assets. We aspire to one
day integrate our financial and non-financial performances
into one report. The following Key Performance Index (KPI)
represents our first step towards achieving this integration.
F
Finance
These KPI will help us review our achievements against our
mid-term plan, while also checking on the opportunities and
threats we may face in the future and the potential effect they
Annual report
+
Cover story
Follow us on Twitter at
Samsung Life opened the “Love in Us”
twitter.com/samsunglife
Plaza in September 2011 to provide a
Environment
S
G
Society
Corporate
governance
Sustainability report
=
Integrated
thinking
venue for cultural, musical and artistic
Third Party Assurance
This report received third party assurance from the
Korea Productivity Center, an independent assurance
provider (pages 72 to 73).
Contact Information
performances. In the future, we will
Corporate Planning 2 Team, Samsung Life
continue to fully support the arts.
Tel: +82-2-772-6869
e-mail: csr.loveinus@samsung.com
Integrated report
could have on our financial performance.
Designed by Honeycommunications +82-2-325-9889, Printed by Keumgang Printek +82-2-2275-5641
contents
2010 - 2011
Key performance indicators
00
2011 highlights
02
Message from the CEO
04
Company profile
06
brand value
08
Corporate governance
10
Ethical management
12
Stakeholder communication
14
Materiality analysis
16
Stakeholder interviews
18
Business
20
1.1 Sustaining growth through innovation
22
1.2 Improving financial performance
24
1.3 Strengthening risk management to protect customers
28
and corporate values
Samsung Life Insurance Sustainability Report
#55, Sejong Street (Taepyeongno 2-ga), Junggo, Seoul, SAMSUNG LIFE INSURANCE
www.samsunglife.com
2010-2011 Samsung Life Insurance
Sustainability Report
CustomerS
30
2.1 Customer Care Management to enhance values
32
2.2 Going beyond customer satisfaction
36
EMPLOYEES & financial consultants 38
3.1 Promoting diversity
40
3.2 Achieving sustainable growth through
41
competitive compensation
3.3 Building a great workplace
43
3.4 Labor Management relations
45
Corporate Social Responsibility
46
4.1 Social contribution programs
48
4.2 Philanthropic education for future generations
50
4.3 Community engagement for the underprivileged
52
4.4 Culture and sports sponsorships
55
environment
56
5.1 Green management overview
58
5.2 Green financial products
60
5.3 Green management activities
61
5.4 Green management performance
63
Appendix
65
Financial statements summary
66
Awards and recognitions
70
Third party assurance statement
72
GRI declaration
74
GRI G3.1 index
75
Glossary
79
Memberships
80