Samsung Life Insurance Takes Steps to Manage Financial Affiliates' Soundness (Comprehensive)

Role Shift with Passage of Financial Group Supervision Act
CEO-Direct 'Consumer Protection Office' Upgraded
Samsung Fire & Card Also Revamp Organizational Structure

[Asia Economy Reporter Oh Hyung-gil] Samsung Life Insurance will take the lead in overall crisis and soundness management on behalf of Samsung Financial affiliates in accordance with the "Act on the Supervision of Financial Complex Corporations" (formerly known as the Financial Group Supervision Act). To this end, the "Competitiveness Enhancement Task Force (TF)," which played the role of a 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 including these details the day before.

First, the Competitiveness Enhancement TF, newly established in 2018 after the dissolution of Samsung Group's Future Strategy Office, had its personnel reassigned and roles adjusted. Until now, the TF has served as 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 Financial Complex Corporations Supervision Act. 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 will oversee and compile all 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 Financial Competitiveness TF that had served as the control tower.

[Image source=Yonhap News]

Additionally, the Consumer Protection Team was elevated to the "Consumer Protection Office" directly under the CEO. Samsung Life Insurance has suffered from consumer protection issues such as unpaid hospitalization fees for cancer insurance at convalescent hospitals and unpaid immediate annuities for several years. Especially with the Financial Consumer Protection Act coming into effect next year, it is interpreted as the CEO’s intention to personally oversee consumer protection matters and manage consumer satisfaction.

To secure future competitiveness, the Digital Business Division and Data Strategy Team were expanded and reorganized, and the FC Sales Headquarters, an organization related to exclusive planners (FC), was consolidated from two to one. This is interpreted as a move to improve management efficiency and strengthen communication on the ground.

Earlier, Samsung Life Insurance also promoted 15 people through executive personnel appointments. Choi In-cheol, Vice President of Samsung Life Insurance and a former member of the Future Strategy Office, was born in 1964 and joined Samsung Economic Research Institute in 1997. He served as an executive in the planning team at Samsung Electronics. After serving as Senior Manager of the Samsung Electronics Planning Team, he moved to Samsung Life Insurance, where he held positions such as Executive Director of the Planning Team and Executive Director of the Customer Support Office.

Samsung Life Insurance expanded the diversity of its management candidate pool by selecting senior executives from various sectors including insurance sales, asset management, and management support. Among those promoted to Executive Director were Kim Seon, Park Min-gyu, and Oh Hwa-jong. The list of those promoted to Senior Manager included Ko Young-dong, Kim Chang-hoon, Park Hae-gwan, Oh Sang-taek, Oh Seong-yong, Lee Si-wan, Lee Ji-seon, Lim Hyun-jin, Jung Jin-gap, Jin Hyung-nam, and Choi Won-jae.

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 formulation 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 combining 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.