Kyobo Life Insurance Establishes Mid- to Long-Term Growth Strategy... Shin Chang-jae Accelerates 'Ambidextrous Management'

New Blueprint to Follow 'Vision 2020'
Consulting Work to Be Completed by November

[Asia Economy Reporter Oh Hyung-gil] Kyobo Life Insurance has begun establishing a new mid- to long-term growth strategy following 'Vision 2020.'

The life insurance industry has been experiencing structural crises characterized by low growth, low interest rates, and low birth rates, resulting in several years of negative growth. This move is interpreted as an effort to overcome the unpredictable management situation by preparing a new growth strategy.

According to the life insurance industry on the 12th, Kyobo Life Insurance is currently in the process of selecting a consulting firm to carry out a project for establishing a mid- to long-term corporate strategy. The plan is to select the firm by the end of this month and complete the consulting work over approximately three months by November.

In 2017, Kyobo Life Insurance declared 'Vision 2020,' aiming to become the 'No.1 life insurance company innovating products and channels in preparation for the 4th Industrial Revolution era.'

The mid- to long-term strategy being prepared this time aims to present Kyobo Life Insurance's future direction amid the stagnation of the life insurance market and the expansion of uncertainties in life insurance due to changes in the digital environment. It involves diagnosing the current state of the life insurance market and establishing a mid- to long-term direction for more than five years based on future financial market outlooks and the impact of changes in financial regulations. The plan is to develop a mid-term corporate strategy based on this.

Additionally, Kyobo Life Insurance plans to assess its internal capabilities and the competitiveness of its core businesses, and to seek new growth engines such as establishing a digital ecosystem and revenue models outside of insurance business, including the formulation of future marketing strategies.

It will also diagnose recent financial issues. The plan includes reflecting changes in the financial industry in the 'post-COVID-19' era and prospects for the future competitive landscape due to the entry of 'Big Tech' (large information and communication companies) into finance. In particular, Chairman Shin Chang-jae and other executives are expected to actively participate in discussions for establishing the mid- to long-term strategy.

Chairman Shin emphasized 'ambidextrous management' through digital transformation at the 62nd anniversary ceremony held on the 7th. He stressed the need to generate profits through the traditional life insurance sales division while simultaneously discovering future growth engines.

Recently, Kyobo Life Insurance has been focusing on management centered on digital innovation. Setting 'Beyond survival, let's become Digital Kyobo' as this year's management policy, it has been developing the artificial intelligence (AI) insurance underwriting system 'BARO' and creating the open innovation platform 'InnoStage' for collaboration with startups.

A Kyobo Life Insurance official said, "As stated in this year's anniversary speech, Kyobo Life Insurance needs ambidextrous management for survival and development going forward," adding, "The mid- to long-term corporate strategy will serve as a blueprint for ambidextrous management by enhancing competitiveness in the insurance industry and discovering future new businesses based on digital foundations."

This content was produced with the assistance of AI translation services.