A local subsidiary was established in Singapore by Sony Life Insurance to push forward the plans to offer life insurance products through agencies in shopping malls. According to Nikkei Asian Review, the Japan-based insurer has a goal of opening at least 50 agencies in the city within 10 years starting on summer of 2018.
In addition to insurance, Sony Life Insurance also aims to establish a local joint venture with Tokyo-based Starts Securities Co Ltd to perform financial advisory for businesses. This will be a subsidiary of Sony Life Singapore.
Sony Life believes that the insurance firm has very good chances of finding potential customers in the country because of its strength in selling life insurance products by way of sophisticated consulting. It believes that the strategy of putting up agencies in shopping malls will be successful because of Singapore’s dense population.
At first, the agencies will offer insurance products of other insurers but eventually, Sony Life will be offering its own products. Sony Life intends to make its undertaking in Singapore profitable within 5 years time and recoup some of its losses. In the 1990’s Sony Life entered the Philippine insurance market but it has to pull out in 2012 because of disappointing earnings.
Sony Life is now focusing its attention on more developed markets like Australia. Last year, Sony Life was able to acquire a substantial stake in ClearView Wealth a diversified Australian financial services company that also offers insurance products.
Insurers play an important role in the Asian market because societies are getting older. While life expectancy increases, new born rates have declined. By 2050, it is expected that at least 25% of the world’s population will be over 65 years old.
Countries in Asia are leading the global ageing trend. While Asia has been successful in ensuring that its society is healthy with a longer life expectancy, how to fund the aging society is now a big issue.
One of the strategies on how to sell insurance effectively is to create informative and relevant content on the website that will answer the most common questions of consumers. It is also important to provide a guide for additional information that a visitor can download in exchange for an email address.