Life and Non-Life Insurance Association Chairman: "Restoring Consumer Trust is a Priority... Strengthening the Core Role of Insurance" (Comprehensive)

2021 New Year's Address "Persistent Low Interest, Low Growth Crisis"
Life Insurance Jeong Hee-su "Expansion of ESG Management"
Non-life Insurance Jeong Ji-won "Need for Game Changer"

Jung Hee-su, President of the Life Insurance Association

[Asia Economy Reporter Oh Hyung-gil] The chairmen of the Life and Non-life Insurance Associations emphasized thorough preparation and effort for a new leap forward in the new year amid the ongoing crisis in the insurance industry caused by low interest rates and low growth. They stated that restoring consumer trust is a priority and that they will strengthen the fundamental role of insurance in response to digital transformation.

Jung Hee-soo, chairman of the Life Insurance Association, said in his New Year's address on the 31st, "Fourth industrial revolution technologies such as artificial intelligence (AI) and big data are accelerating the digitalization of the financial industry, triggered by the COVID-19 pandemic," adding, "We will develop the competitive capabilities of the life insurance industry and strengthen the fundamental role of life insurance as a reliable social safety net in the era of 100-year lifespans."

Chairman Jung stated, "We will support the industry to enable non-face-to-face and digital processes across all business areas, from insurance contract conclusion to claim payment," emphasizing, "In particular, through the prompt implementation of the electronic processing project for indemnity insurance claims, we will reduce 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 especially noted, "The foundation of corporate growth and prosperity is deep customer trust," and mentioned, "We will promote environmental, social, and governance (ESG) management together with member companies to restore customer trust and achieve sustainable management."

He continued, "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."

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

Jung Ji-won, chairman of the Non-life Insurance Association, stated in his New Year's address that the uncertainty of the growth path is very high due to the resurgence of COVID-19, and said, "Structural paradigm changes across all areas of society, economy, and industry will accelerate further," emphasizing, "A 'game changer' that changes the market landscape itself with innovative ideas is needed."

Chairman Jung said, "Looking at the insurance industry from the consumer's perspective is the first step to restoring trust," stressing, "We will examine whether there are any shortcomings in existing products and services from the consumer's viewpoint and pay more attention to the sales process, which is the point of contact with consumers."

He also urged, "We need to consider how private insurance can provide coverage for new risks highlighted by COVID-19, such as business suspension, travel, and performance cancellations, and pay attention to activating pet insurance to support the rapidly growing pet industry and market," adding, "We must check whether safety nets are sufficient for those engaged in hazardous jobs such as construction workers and firefighters and improve related insurance systems."

He particularly pointed out, "Big tech and fintech companies will emerge as strong new competitors in the insurance market," and proposed, "We need to establish a framework for fair competition with financial authorities and find models that allow for a 'win-win' situation."

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