Jeong Hee-su, President of the Life Insurance Association, "Strengthening Data Competitiveness and Supporting Comprehensive Life Platforms"

Jung Hee-su, Chairman of the Life Insurance Association, is attending the 'Financial Services Commission Chairman-Financial Association Chairmen Meeting' held on the afternoon of the 16th at the Korea Federation of Banks in Jung-gu, Seoul.

[Asia Economy Reporter Oh Hyung-gil] The life insurance industry is embarking on the establishment of a comprehensive lifestyle financial platform that provides financial and daily life-related services based on digital technology. In response to aging, it aims to strengthen the role of private pensions in securing retirement income, develop insurance products to prepare for elderly medical expenses, and expand tax benefits.

On the 13th, at a non-face-to-face press briefing, Jung Hee-soo, Chairman of the Life Insurance Association, stated, "For the life insurance industry to grow as a core sector in the data economy era, it is essential to secure digital innovation growth engines such as specialized insurance products and services through the utilization and convergence of financial and health data," and pledged to support the enhancement of data competitiveness.

Chairman Jung diagnosed, "While the domestic life insurance household subscription rate is approaching saturation at 81.0%, rapid aging is progressing, and the total fertility rate is 0.84, the lowest worldwide, causing the life insurance market to shrink significantly. Additionally, the business environment is challenging due to deteriorating sales power from prolonged low interest rates, deepening negative spread, capital expansion burdens from the introduction of new international insurance accounting standards (IFRS17) and the new solvency regime (K-ICS) in 2023, and compliance risks highlighted by the enforcement of the Financial Consumer Protection Act."

He then explained that this year, they will pursue three core tasks: digital innovation, pioneering new markets, and enhancing consumer trust and improving management conditions.

Regarding digital innovation, the Life Insurance Association plans to continuously consult with relevant ministries to utilize public medical data, enter the MyData market, and participate in the Ministry of Health and Welfare’s My Healthway initiative.

To build a comprehensive lifestyle financial platform, they will conduct service demand surveys targeting the MZ generation (Millennials and Generation Z), establish plans to activate the platform, and promote institutional improvements such as life insurers joining open banking, enabling MyPayment, and allowing deferred payments.

In line with the aging era, they will support the development of various pension insurance products such as tontine pensions and promote the expansion of additional tax deductions for pension accounts.

To revitalize healthcare services, they plan to propose revisions to the Ministry of Health and Welfare’s "Non-medical Health Management Service Guidelines" and address institutional improvement tasks such as laying the foundation for senior care market entry.

They will push for tax law amendments by proposing corporate tax law application measures in preparation for the introduction of IFRS17 and implement financial impact monitoring to mitigate financial shocks upon the introduction of K-ICS.

To spread ESG (Environmental, Social, and Governance) management culture, they will request domestic evaluation agencies to establish standardized ESG evaluation indicators and respond promptly to financial authorities’ ESG policy initiatives.

Chairman Jung emphasized, "We will do our best to actively promote digital innovation so that the turbulent waves of change surrounding us can be harnessed as a driving force for the sustainable growth of the life insurance industry."

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