Eun Seong-su Chairman: "ESG Management is a New Opportunity for the Insurance Industry"

Congratulatory Speech at the 'Insurance Industry ESG Management Declaration Ceremony'

[Asia Economy Reporter Park Sun-mi] Eun Sung-soo, Chairman of the Financial Services Commission, stated that ESG (Environmental, Social, and Governance) management is emerging as a new opportunity in the insurance industry.

Chairman Eun said this during his congratulatory speech at the 'Insurance Industry ESG Management Declaration Ceremony' held on the morning of the 23rd at the Westin Chosun Hotel in Seoul, adding, "Due to the nature of insurance products and the long-term aspect of investments, insurance is an industry very closely related to ESG." He further explained, "Changes in climate, environment, and social factors are new growth drivers for the insurance industry. The business model requires long-term investment strategies, making it an industry optimized for long-term projects like the Green New Deal. Pursuing sustainable growth through ESG will enhance trust in the industry and improve its social evaluation."

He pointed out that the insurance industry can play three important roles in spreading ESG. First, as a risk guarantor covering risks related to ESG. Examples include prevention and compensation for various damages caused by climate change and developing products for socially vulnerable groups.

Additionally, the industry can act as a promoter and practitioner in spreading ESG management. Chairman Eun said, "We can actively invest in ESG-friendly companies and businesses and reflect ESG performance in insurance premium calculations," adding, "ESG elements should be incorporated into overall management principles and evaluations, and short-term performance orientation and corporate governance must also be improved. These roles are both social demands on the insurance industry and new opportunities to enhance growth, profitability, and reliability."

Chairman Eun promised that the Financial Services Commission will steadily establish the core infrastructure of the ESG disclosure system by 2030 and reflect the industry's efforts in ESG management and investment as incentives in management performance evaluations. He also pledged to continuously communicate with the field to promote ESG expansion and boldly improve various regulations, systems, and practices.

Regarding the direction the insurance industry should take, he emphasized that the supply-centered insurance industry structure must shift to a consumer-centered one and that the function and role of insurance as a private safety net should be further strengthened. Furthermore, he stated that actively supporting the digital transformation of the insurance industry and fundamentally improving management practices and culture through the implementation of IFRS17 and the improvement of short-term performance orientation are important.

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