Stingy Life Insurers

A number of insurers were stingy in their corporate social responsibility (CSR) donations in the first quarter despite enjoying handsome profits, according to their financial statements Thursday.

Among them, PCA Life, AIA Life, Tong Yang Life, BNP Paribas Cardif Life and AXA General Insurance are facing calls to improve their CSR awareness.

PCA Life did not donate anything in the first quarter though its net profit grew to 2.34 billion won ($2.08 million), up from 1.9 billion a year earlier.

BNP Paribas Cardif Life made a 130,000 won ($116) donation through a charity bazaar, which accounted for 0.002 percent of its 8.4 billion won net profit in the quarter. The company netted a 3.2 billion won loss a year ago.

Larger insurers were not so different. AIA Life made a 5.78 million won donation in the first quarter, or 0.007 percent of its 80.37 billion won net profit. Tong Yang Life donated 8 million won, also 0.007 percent of 115.88 billion won net profit.

AXA General Insurance made a 5 million won donation, or 0.03 percent of its 16.56 billion won net profit. Leading insurers such as Samsung Life and Samsung Fire made donations of 0.1 percent and 0.43 percent, respectively, of their net profits. 

Insurers argue that they typically make big donations in the final months of the year. Still, critics point out that they are too tight-fisted.
"They don't have an obligation to contribute a part of their profits to society, but the donations they make are very disappointing," said Cho Nam-hee, head of local civic group Financial Consumer Agency.

"More stunning is the fact that foreign insurers whose head offices are in advanced nations are reluctant to donate. They seem to just care about making profits here, which I think is tantamount to ignoring Korea and the Korean people. I hope they change their policies from now on."
He pointed out that people need to know exactly which companies donate and which don't.

"The regulators and the media will put forth more efforts to let consumers know the amount of donations to put more pressure on insurance companies," he said.

"For example, the financial regulator may make a dedicated website, which shows the social responsibility programs of financial companies, especially insurance firms."

Some insurance companies tried to be responsible corporate citizens. 

Lina Life Korea made a 7.59 billion won donation in the first quarter -- 11.73 percent of its 64.68 billion won net profit. The ratios for Hanwha General Insurance, Mirae Asset Life, Prudential Life and AIG were 4.15 percent, 3.79 percent, 1.97 percent and 1.97 percent, respectively.