Kyobo Life's 'Digital Transformation' Strategy Works... "Clear Improvement in Insurance Indicators"

Kyobo Life Insurance Headquarters

[Asia Economy Reporter Changhwan Lee] Kyobo Life Insurance is achieving improvements in various indicators of its existing insurance business division, thanks to its company-wide digital transformation efforts.

Kyobo Life announced on the 24th that it is seeing tangible results in the second year of promoting the 'DBS (Digital Transformation Based Strategy) Management Strategy,' which centers on company-wide digital transformation to respond to rapidly changing business environments.

Kyobo Life is focusing on implementing the DBS strategy based on a dual management approach of 'securing new growth engines' and 'improving traditional insurance business.' The DBS strategy aims to improve the existing insurance business while simultaneously securing new growth engines for the future. It means fundamentally transforming all aspects of company management?including organizational culture, leadership, work processes, internal communication methods, and business models?to fit the digital era.

Results are emerging one after another. In particular, indicators such as insurance subscription, payment, and customer complaint handling have noticeably improved, achieving clear innovation outcomes in the insurance business.

In the insurance subscription sector, new services such as 'immediate delivery of mobile insurance policies,' 'enhanced underwriting and expanded subscription using smartphones,' and 'pre-subscription answer inquiry service (K-PASS)' have been introduced.

As a result, the time from subscription through underwriting and supplementation to policy issuance has been reduced from 35 hours to 11.1 hours as of the end of last month. By the end of this year, the company plans to shorten this to 8 hours, enabling customers to receive their insurance policies within a day of subscription.

Regarding insurance payments, efforts have focused on fast and accurate payment by implementing 'AI-based automatic underwriting models,' 'expanding automatic payment review rates based on digital technology,' and 'immediate remittance after payment review completion.'

Through these efforts, the time from accident insurance claim to payment has decreased from 4.8 hours to 2.7 hours, and the insurance payment period disclosed by the Life Insurance Association for the first half of this year is at the industry's highest level.

Since November last year, Kyobo Life has been innovating the accident insurance payment process and, after a year of preparation, introduced new AI underwriting models and Optical Character Recognition (OCR) systems this month. Since initially establishing the AI underwriting model at the end of 2020, continuous enhancements will be made to steadily increase the automatic underwriting rate.

The application of the OCR system has been expanded beyond medical expense receipts to include 13 types of documents for the first time in the industry, such as diagnosis certificates, admission and discharge confirmations, surgery confirmations, and outpatient confirmations.

In the area of customer complaint handling, measures such as 'selection of cases for expedited processing,' 'VOC management support system (PC and tablet versions),' and 'VOC online consultation and mediation system' have been implemented. The customer complaint processing period, which used to take more than 5 days, now takes only 0.8 days?less than a full day.

A Kyobo Life official stated, "Digital transformation plays a key role in enhancing customer satisfaction by improving access to insurance subscriptions, speeding up insurance payments, and simplifying paperwork, thereby providing differentiated experiences. We will continue proactive efforts to identify and resolve customer inconveniences through active adoption of digital technologies."

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