Samsung Life Insurance Takes Initiative to Manage Financial Affiliates' Soundness

Role Shift with Passage of Financial Conglomerates Supervision Act
CEO-Direct 'Consumer Protection Office' Elevated
Samsung Fire & Card Also Reorganize Structure

[Asia Economy Reporter Oh Hyung-gil] Samsung Life Insurance will take the lead in overall risk and soundness management on behalf of Samsung Financial affiliates in accordance with the "Act on the Supervision of Financial Conglomerates" (formerly known as the Financial Group Supervision Act). To this end, the "Competitiveness Enhancement Task Force (TF)," which served as the control tower for financial affiliates after the dissolution of Samsung Group's Future Strategy Office, will focus on establishing mid- to long-term strategies and collaboration tasks among affiliates.

According to the insurance industry on the 11th, Samsung Life Insurance carried out an organizational restructuring yesterday that included these changes.

First, the Competitiveness Enhancement TF, newly established in 2018 after the dissolution of Samsung Group's Future Strategy Office, had its personnel reassigned and its role adjusted. Until now, the TF has played the role of a "control tower" coordinating and consulting on common issues among financial affiliates.

This is interpreted as a preemptive measure ahead of the enforcement of the Act on the Supervision of Financial Conglomerates. The Act, which will be enforced in July next year, was established to prevent simultaneous insolvency of financial affiliates within a corporate group.

According to the Act, a financial company representing the financial group is selected as the representative financial company, which is responsible for overseeing and submitting all related tasks such as internal control, risk management, soundness management, reporting, and disclosure. It also requires the establishment and preparation of internal control and risk management policies.

Following the enforcement of the law, it is expected that Samsung Life Insurance will take on the role of the representative company for five affiliates, including Samsung Fire & Marine Insurance, Samsung Securities, Samsung Card, and Samsung Asset Management, replacing the Competitiveness TF that had served as the control tower.

Additionally, the Consumer Protection Team has been elevated to the "Consumer Protection Office," directly under the CEO. Samsung Life Insurance has struggled with consumer protection issues such as unpaid cancer insurance hospitalization fees and unpaid immediate annuities disputes over the past few years. Especially with the Financial Consumer Protection Act coming into effect next year, this move is seen as a commitment for the CEO to directly oversee consumer protection matters and manage consumer satisfaction.

To secure future competitiveness, the Digital Business Division and Data Strategy Team have been expanded and reorganized, and the FC Sales Headquarters, an organization related to exclusive financial consultants (FC), has been consolidated from two units into one. This is interpreted as an effort to improve management efficiency and strengthen communication on the ground.

[Image source=Yonhap News]

Other financial affiliates also underwent organizational restructuring. Samsung Fire & Marine Insurance established a Digital Headquarters to serve as a control tower for activating digital channels. The Global Business Division will be integrated with the New Business Strategy Team under the Management Support Office. It will oversee the establishment and execution of overseas business strategies linked to mergers and acquisitions (M&A) and group synergies.

Samsung Card also carried out an organizational restructuring focused on accelerating digital-based business innovation and discovering future growth engines. Under the Digital Innovation Office, the "BDA (Biz Data Analytics) Center" and "IT Department" were organized to create synergy by integrating data and digital capabilities.

Additionally, to generate revenue sources such as finance and new businesses, a Financial New Business Headquarters was established, and online and offline marketing channels were unified under the Marketing Headquarters. Field sales such as individual and corporate sales were integrated into the New Sales Headquarters, and an "Environmental, Social, and Governance (ESG)" part was newly established to strengthen the sustainable management system.

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