Insurers Accelerate Organizational Restructuring Amid 'Next Year's Piled-Up Tasks'

Expansion of Digital Transformation Support Organizations

Jeong Eun-bo, Governor of the Financial Supervisory Service, is delivering opening remarks at the 'Life Insurance CEO Meeting' held on the 25th at the Millennium Hilton Seoul Hotel in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Oh Hyung-gil] Insurance companies are accelerating organizational restructuring to prepare for the challenges expected next year. They face numerous tasks to address, from responding to the new International Financial Reporting Standard (IFRS17) set to be introduced in 2023, to digital transformation driven by the spread of non-face-to-face services, and the expansion of ESG (Environmental, Social, and Governance) management.

According to the insurance industry on the 15th, Hanwha Life Insurance carried out an organizational restructuring earlier this month, changing from the existing structure of 3 divisions and 6 headquarters to 5 divisions and 6 headquarters. The Management Innovation Committee was renamed the Management Innovation Division, and the Investment Business Headquarters and Strategic Investment Headquarters were merged to establish a new Investment Division. A Future Management Committee was newly established under the direct control of the CEO to support early commercialization linked with external partnerships.

Additionally, Hanwha Life recruited Vice President Ha Sang-woo, a financial consulting expert, and Executive Director Lee Han-saem, a former Financial Services Commission secretary, to the Management Strategy Office, which is responsible for establishing a new vision to lead paradigm shifts in the insurance industry and for formulating and executing mid- to long-term strategies for sustainable growth.

Kyobo Life Insurance expanded and reorganized its existing Digital Innovation Support Office into the Digital Transformation (DT) Support Office and established a DT Promotion Team to support company-wide digital business. The Digital New Business Team was renamed the Open Innovation Team to strengthen collaboration with startups and discover new business models.

To secure a leading position in the fiercely competitive platform sector, Kyobo Life also created a Platform Commercialization Promotion Task Force and a Financial MyData Part to promote the MyData business. For digital-based work process innovation, they formed a Big Data Support Team and an Artificial Intelligence (AI) Utilization Team.

Ko Seung-beom, Chairman of the Financial Services Commission (sixth from the left in the front row), is taking a commemorative photo with attendees at the Financial Services Commission Chairman and Insurance Industry Meeting held at Lotte Hotel in Jung-gu, Seoul on the 3rd. On this day, Chairman Ko met with insurance company CEOs and experts from related organizations to discuss the development direction of the insurance industry and key issues. Photo by Kim Hyun-min kimhyun81@

NH Nonghyup Life Insurance also held a board meeting on the 1st and finalized a year-end organizational restructuring plan that includes upgrading the current Digital Strategy Bureau to the Digital Strategy Division. The Marketing Strategy Division was renamed the CPC (Channel, Product, Customer) Strategy Division to strengthen management of marketing, which had been dispersed across various channels.

Mirae Asset Life Insurance established a Digital Sales Headquarters last month and elevated the Variable Operation Office to a headquarters level. This move is interpreted as an effort to establish a new digital insurance business model and maintain a competitive edge in the variable insurance sector, where they have strengths.

Non-life insurers are also increasing dedicated organizations for ESG management and for areas such as indemnity health insurance, which has recently been accumulating losses. Hyundai Marine & Fire Insurance expanded its Eco-friendly Management Committee, which has been operating since 2012, into an ESG Operations Committee. This supports the management’s ESG policies and responds to social demands for ESG management.

Additionally, to reduce the loss ratio of indemnity insurance, Hyundai Marine & Fire Insurance newly created a Long-term Indemnity Management Part as a dedicated department. DB Insurance is operating a Profit Structure Improvement Task Force Team, and Samsung Fire & Marine Insurance and Meritz Fire & Marine Insurance are also running dedicated indemnity insurance organizations.

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