Jeong Hee-su Appointed as Chairman of the Life Insurance Association: "Restoring Customer Trust is the Top Priority"

Three Major Initiatives: ESG Management, Digital Transformation, and Big Data Utilization

At the inauguration ceremony held on the 9th at the Life Insurance Association auditorium, Jeong Hee-su, chairman of the Life Insurance Association, stated, "The financial environment is rapidly changing due to the Fourth Industrial Revolution, the expansion of fintech influence, and the introduction of new financial soundness regulations." He assessed, "In the turbulent era of digital finance and the post-COVID-19 period, we may face unforeseen tremendous challenges and difficulties that could make us worry about survival."

[Asia Economy Reporter Oh Hyung-gil] "Restoring and strengthening customer trust is arguably the top priority value in life insurance. As an agenda for corporate trust recovery and sustainable management, we will promote ESG management, which centers on Environmental, Social, and Governance (ESG) core values, together with member companies."

Jung Hee-soo, chairman of the Life Insurance Association, declared the restoration of consumer trust in the life insurance industry as his inaugural statement. He identified ESG management promotion, digital transformation, and big data utilization as the three main tasks.

At the inauguration ceremony held on the 9th at the Life Insurance Association auditorium, Chairman Jung stated, "The financial environment is rapidly changing due to the Fourth Industrial Revolution, the expansion of fintech influence, and the introduction of new financial soundness regulations," adding, "In the turbulent era of digital finance and the post-COVID-19 era, we may face unprecedented tremendous challenges and difficulties that could threaten survival."

He also emphasized customer trust, saying, "Unlike other financial products such as savings deposits and funds, life insurance products maintain contract validity for several years to decades, sustaining a long-term relationship between the company and the customer."

ESG management is a business activity that pursues sustainable corporate growth by managing non-financial risk factors such as environmental, social responsibility, and corporate governance, in addition to financial performance. Life insurers have actively introduced ESG management through initiatives like coal phase-out, realization of low-carbon workplaces, and energy efficiency improvements.

Chairman Jung believes that ESG management can enhance the image of the life insurance industry through campaigns such as finding hidden insurance money and establishing sound recruitment order.

He stated, "The Fourth Industrial Revolution, represented by artificial intelligence (AI) and big data, has accelerated the digitalization of the financial industry, especially in the wake of the COVID-19 pandemic," and added, "We will work with the National Assembly and policy authorities to improve regulations so that all business areas, from insurance contract conclusion to claim payment, can be non-face-to-face and digitalized."

He also expressed his ambition to expand tax benefits to prepare for national retirement income and medical expenses in the aging era and to develop various products and services from the consumer perspective. Furthermore, to secure markets for the sustainable growth of the life insurance industry, he set mid- to long-term tasks such as activating healthcare services, including big data utilization, and expanding ancillary businesses.

He explained, "By utilizing medical big data, insurers can develop various products and enhance consumer benefits through customized products," adding, "It is also expected to bring significant national benefits by preventing insurance fraud and medical shopping, thereby stopping the leakage of health insurance finances."

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