Due to COVID-19... Insurance Companies Accelerate 'Digital Transformation'

Samsung Life Insurance Introduces Mobile Subscription
Hanwha Life Insurance Launches Digital Sales Channel LifeMD
Kyobo Life Insurance Drives Digital-Based Innovation

[Asia Economy Reporter Ki Ha-young] As the non-face-to-face economy has been activated due to the impact of the novel coronavirus infection (COVID-19), the insurance industry is also accelerating its digital transformation efforts. From product subscription to consultation and premium payment, everything can be conveniently handled smartly.

According to the insurance industry on the 17th, Samsung Life Insurance's mobile subscription, introduced earlier this month, has been smoothly operating, accounting for more than 10% of all subscriptions since its launch. Mobile subscription is a method where, after a consultant explains the product, customers who wish to subscribe to insurance can do so via their smartphones without needing to meet the consultant again. Samsung Life Insurance, by introducing this digital subscription process, also automated the pre-contract disclosure obligation procedure, which requires customers to notify their medical history before concluding an insurance contract, for the first time in the industry.

Earlier, Hanwha Life Insurance launched a digital sales channel called 'LIFE MD' on the 19th of last month, which enables non-face-to-face processes from agent registration to subscription based on a mobile application (app). LIFE MD allows all learning for the agent qualification exam to be conducted non-face-to-face, and appointment contracts can also be signed digitally. Even after starting activities, the app supports product recommendations, coverage analysis, customer management, and mobile subscription. Hanwha Life plans to focus on optimizing the LIFE MD app in the short term and aims to expand its organization and contribute to new contracts through large-scale recruiting in the mid to long term.

Kyobo Life Insurance is also promoting digital-based product and service innovation and building new business models according to the 'Digital Transformation' strategy of CEO Shin Chang-jae. Last year, it developed the world's first AI underwriting system 'BARO' that automatically approves applications by analyzing subscription forms using artificial intelligence (AI) underwriters. This year, in partnership with Kakao Enterprise, it established a non-face-to-face customer consultation system incorporating Kakao's AI chatbot. The chatbot consultation, previously applied in retirement pension and loan sectors, has been expanded to cover all insurance services for all customers.

The non-life insurance industry is also introducing various insurance services using digital technology. This includes developing insurance fraud prediction systems applying big data and AI technology and providing digital-based claim services. Since the beginning of this year, some companies have introduced insurance claim services based on KakaoTalk chat without requiring separate app installation, as well as non-face-to-face video call consultation services. Additionally, digital insurers such as Carrot General Insurance and Hana General Insurance, which sell insurance products non-face-to-face through mobile apps and websites, are emerging one after another.

An industry official said, "As COVID-19 has accelerated the non-face-to-face economy, digital transformation is expanding not only in sales but throughout management in the insurance industry," adding, "Non-face-to-face insurance services based on digital technology are also increasing, and this trend will continue to accelerate."

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