Ji Won Jung, Chairman of the Korea Non-Life Insurance Association, "Will Normalize Abnormal Factors in Indemnity and Auto Insurance"

Inauguration of the 54th Sonbo Association President
"Enhancing Trust in the Non-Life Insurance Industry"

Jiwon Jeong, President of the General Insurance Association

[Asia Economy Reporter Oh Hyung-gil] Jung Ji-won, Chairman of the Korea Non-Life Insurance Association, stated on the 22nd that "normalization of indemnity health insurance and automobile insurance is necessary."

In his inaugural speech that day, Chairman Jung said, "Indemnity health insurance and automobile insurance are, in fact, national insurance products that the majority of the public subscribe to for a healthy and safe daily life," adding, "If unnecessary insurance payouts increase, the majority of the public will suffer from premium hikes, so to protect the interests of good-faith policyholders, it is essential to actively block unnecessary insurance leakage."

He continued, "Regarding indemnity health insurance, the urgent task is to correct the excessive non-reimbursable treatments by some problematic clinics and hospitals, which are the main culprits of insurance payout leakage," and expressed his ambition, saying, "We will consult with policy authorities to establish a management system for non-reimbursable treatments lacking control mechanisms, such as cataract surgery, and strive to stabilize the market for the fourth-generation indemnity health insurance products introduced to prevent indiscriminate medical shopping."

Regarding automobile insurance, he explained, "We need to establish new standards to prevent the long-term treatment practices that demand excessive insurance payouts even for minor accidents," and "We will work with related agencies to consider system improvements concerning issues like Korean traditional medicine treatment fees and repair costs from minor contact accidents."

Chairman Jung also emphasized, "We must carefully examine and actively resolve any inconveniences from the consumer's perspective throughout the entire insurance service process," adding, "Especially regarding insurance payouts, where consumer complaints are most frequent, we should enhance trust by transparently handling claims through the establishment of reasonable standards."

He proposed, "Just as European insurers form innovation labs to explore the role of insurance in innovative industries, our non-life insurance industry must seize new growth opportunities in line with industrial structural changes such as the Digital New Deal policy."

He plans to actively respond to market demands for coverage of new risks revealed by COVID-19, such as business suspension risks and hacking risks due to expanded remote work.

He added, "In line with the activation of the data economy, we will promote the development of new products and innovative services through the combination of insurance, big data, and AI, and work with the industry to consider how to support the activation of non-face-to-face sales, proposing necessary system improvements to policy authorities."

Chairman Jung urged the association's executives and staff, saying, "We cannot navigate the comprehensive paradigm shift unfolding before us by resting on past success formulas or passively waiting for opportunities," and "In this era of rapid change and uncertainty, we must overcome fear and become the 'first penguin' who dives into the sea first."

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