MetLife bets on retirement market

MetLife Insurance of Korea has focus on the fast growing retirement financial market. They are gong to attract more consumers through a variety of pension plans. Stuart Solomon, who is the CEO of the MetLife Insurance, said the Korean retirement market has big growth potential. According to the company, they will have a training course with Seoul National University for senior financial advisors in March. The domestic variable insurance market is growing quickly and the variable annuity sales also will rapidly expand in few years. The total sales of variable insurance products already have increased by about seven times over the past two years. Variable insurance products are different from regular life insurance because the contributions by policyholders are invested in stocks and bonds to produce high returns. In these days, many local consumers are interest in the high risk, high return products. MetLife aims to increase its share to around 5 percent in Korea that will reach the world's seventh largest insurance market.

Opinion.

I think MetLife Insurance found good niche market. Many young marriage couples avoid birthing a child and it made an aging society. Since many people worry about their declining years, they will prepare their future to have many insurance products. However, I think high risk and high return product is not fit for retirement market, because retire people want high return with more safe way for their future. We talked about in class that insurances are one of services. The consumers have expectations on retirement insurance products and the company has to satisfy consumers without any caps.

Source_ MetLife bets on retirement market,

The Korea Herald,
by Ko Kyoung-tae,
2008.05.14

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