[New Year's Address] Jung Hee-su, President of the Life Insurance Association, "Strengthening the Role of the Social Safety Net in the Era of 100-Year Lifespans"

[Asia Economy Reporter Oh Hyung-gil] Jeong Hee-su, Chairman of the Life Insurance Association, stated, "We will develop the competitive capabilities of the life insurance industry to strengthen the fundamental role of life insurance as a reliable social safety net in the era of 100-year lifespans."

In his New Year's address on the 31st, Chairman Jeong said, "Fourth industrial revolution technologies such as artificial intelligence and big data are accelerating the digitalization of the financial industry, triggered by the COVID-19 pandemic."

He added, "We will support the industry to enable non-face-to-face and digital processes across all business areas, from insurance contract signing to claim payments. In particular, through the prompt implementation of the computerized system for indemnity insurance claims, we will alleviate the workload of medical institutions by digitizing document issuance and enhance consumer convenience by simplifying claim procedures, enabling a win-win situation for medical institutions, consumers, and life insurers," he emphasized.

He also said, "To restore customer trust and ensure sustainable management, we will promote Environmental, Social, and Governance (ESG) management together with member companies. By spreading the culture of ESG management, we will contribute to eco-friendly green growth such as climate change response and carbon neutrality, activate social contribution activities including support for socially vulnerable groups, and practice sustainable management such as compliance management."

Furthermore, he introduced, "We will support the expansion of the healthcare market in the life insurance industry through establishing a public and private insurance information-sharing system. We will also guide the smooth landing of soundness regulations to minimize industry shocks caused by new capital adequacy regulations."

Chairman Jeong pointed out, "The life insurance industry is facing increasing management difficulties due to low growth caused by low birth rates and aging, and expanded negative spread from low interest rates. The environment surrounding the life insurance industry is by no means easy, with intensified innovation competition due to the expansion of fintech influence, introduction of new financial soundness regulations, and convergence within the financial sector."

He continued, "Thanks to nationwide efforts to overcome COVID-19, gradual normalization of economic activities is underway, and in the second half of the year, we will enter the true post-COVID era with a full recovery of economic activities. We must thoroughly prepare and strive so that the life insurance industry can overcome the crisis and take another leap forward."

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