United Overseas Bank (UOB) subsidiary United Overseas Insurance (UOI) is undergoing a strategic transformation, planning to increase technology investments by nearly 50% compared to 2023 by 2029, and to hire over 60% more employees in Singapore and the region to accelerate business growth and talent succession planning.
In line with the transformation, the company launched a new digital intermediary platform for financial advisors in August to help them reach a broader customer base while enhancing service efficiency.
UOI CEO Lin Zhi Hua (60 years old) stated in an exclusive interview with Lianhe Zaobao: &#34;As part of the service industry, the insurance sector must meet the changing needs of consumers. Customers expect to access information at any time and demand faster, more convenient, and more transparent services. At the same time, they also hope to have trusted advisors providing professional advice.&#34;
<h3>Digitizing All Insurance Processes by the End of Next Year</h3>
Currently, the automobile and travel insurance processes under UOI have been fully digitized. The company plans to fully digitize the processes for accident and home insurance by the end of next year. Additionally, the company will establish an omnichannel communication platform to allow customers to obtain information and provide feedback through more channels.
According to the company's fiscal year 2024 annual report, Singapore is the largest market for insurance business, accounting for over 80% of total revenue, with other income coming from markets such as Thailand, Malaysia, Indonesia, and Vietnam. In terms of customer categories, over half of the revenue comes from corporate clients, while the rest comes from retail clients.
Lin Zhi Hua revealed that the company is actively exploring new customer segments, including providing customized insurance for Muslim pilgrims and cruise passengers. For example, cruise insurance can help customers avoid unnecessary expenses during their journey, such as rental car excess or related costs from flight transfer delays.
Moreover, the company continues to adjust coverage based on customer needs. For instance, automobile insurance previously did not cover electric vehicle charging stations, but with the increasing popularity of electric vehicles, the company has included residential charging stations in its coverage.
Lin Zhi Hua also noted that cases of home fire incidents have recently increased, but consumer awareness of such insurance remains insufficient. Additionally, compensation cases arising from old water pipes or toilet pipe ruptures continue to occur, highlighting the importance of home insurance.
According to UOI's latest performance report released in July, the company's net profit for the first half of the year decreased by 39% to SGD 8.64 million, with earnings per share correspondingly reduced to 28.25 cents; during the same period, insurance revenue increased by 12.2% to SGD 57.17 million; and net asset value per share increased by 5.5% to SGD 7.71. As of the end of last year, the company had over 130 employees.
The competition in the Singapore insurance market is becoming increasingly fierce, with large international insurance companies ramping up their presence through mergers and acquisitions in recent years. For example, in March last year, Japan's Sumitomo Life Insurance Company fully acquired Singapore insurance provider Singlife; in July last year, German insurance group Allianz planned to acquire at least 51% of Income, but the deal was ultimately halted
<h3>The company discusses acquisitions when opportunities arise</h3>
Lin Zhihua pointed out that the market will inevitably see more consolidation, and the company is also evaluating future acquisition opportunities.
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When discussing the considerations for acquisitions, he emphasized, &#34;For me, one plus one must equal four; both parties in the acquisition must bring synergy. If one plus one only equals two, it’s better not to acquire.&#34;
Lin Zhihua pointed out that the company's transformation is still in its early stages and will take several years to achieve its goals. He is confident that these changes will enhance productivity, mature the team, and better meet customer needs, thereby strengthening business competitiveness.
In March of this year, some minority shareholders of UOI proposed that the company discuss the distribution of its shares in Haw Par Corporation at the annual general meeting to unlock shareholder value. Both UOI and Haw Par Corporation are companies controlled by UOB.
In response, UOI stated at the annual general meeting in April that, given the good performance of Haw Par Corporation's stock and stable dividends, the company plans to continue holding the shares as part of its investment portfolio. The company will not distribute shares of Haw Par Corporation.
<h3>Efforts to strengthen communication with shareholders over the past two years</h3>
Since taking over as CEO of the company in 2023, Lin Zhihua has been working to strengthen communication with shareholders and build trust. He insists on maintaining transparency in investment decisions, explaining the investment plans for the next two to three years to shareholders and gaining their understanding.
Lin Zhihua is the third leader of UOI since its establishment in 1971, and he has over 30 years of experience in the general insurance field
He became the CEO two years ago as part of the company's leadership succession plan. At that time, the late Huang Zuyao stepped down as chairman, and Huang Yizong, vice chairman and president of United Overseas Bank, took over.
Lin Zhihua's first job was as a salesperson selling industrial products, and he later joined the insurance industry, where he remains to this day.
The insurance industry provides assistance to clients in times of difficulty, which gives Lin Zhihua immense satisfaction. Reflecting on his journey, he said, &#34;The insurance industry has consistently provided protection for clients while ensuring that the products and services offered meet consumer needs.&#34;
He believes the biggest change in the industry is the shift in channels for serving customers, with digitalization replacing paper processes in recent years, bringing more convenience to clients

UOI plans to increase its workforce by over 60% in the next four years and raise its technology investment by nearly 50%. The company has launched a new digital intermediary platform to enhance service efficiency and meet customer demands for information access. CEO Lin Zhi Hua stated that the insurance industry needs to adapt to changing consumer demands by providing faster, more convenient, and transparent services while maintaining the trust of professional advisors. The company's goal is to achieve the digitization of all insurance processes by the end of next year

UOI CEO Lin Zhi Hua: Hiring six more employees in the next four years | Lianhe Zaobao