Kyobo Life Insurance Prepares Mid-to-Long-Term Growth Strategy... Shin Chang-jae Accelerates 'Ambidextrous Management' (Comprehensive)

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 Fourth 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.

By diagnosing the current situation of the life insurance market and based on forecasts of the financial market and the impact of changes in financial regulations, the company plans to establish a mid- to long-term direction for more than five years. Based on this, a mid-term corporate strategy will be developed.

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

Chairman Shin Chang-jae Urges Insurance Profit Generation and Digital Innovation

Recent diagnoses of financial issues will also be included. The plan is to reflect changes in the financial industry in the 'post-COVID' era and the future competitive landscape due to the entry of 'Big Tech' (large information and communication companies) into finance. In particular, Chairman Shin Chang-jae of Kyobo Life Insurance and other executives are expected to actively participate in discussions for establishing the mid- to long-term strategy.

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

He added, “To practice ambidextrous sales in the insurance business, we must streamline face-to-face sales methods while pioneering non-face-to-face sales methods for the future,” and urged, “In these turbulent times, not only the company but also consultants and employees must become ambidextrous.”

The digital transformation pursued by Kyobo Life Insurance fundamentally changes the way of working, focusing on digital-based product and service innovation, efficiency improvements in insurance business and asset management processes, and the establishment of new digital-based business models.

Recently, Kyobo Life Insurance has been concentrating on management focused on digital innovation. Setting 'Beyond Survival, Towards Digital Kyobo' as this year’s management policy, it has been developing the AI 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,” 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 technology.”

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