"New Opportunities for Insurers: Retirement, Health, and Liability"

Publication of Korea Insurance Research Institute Report

Domestic insurance companies have been advised to explore new markets that cover risks such as retirement, health, and liability.

On the 9th, Son Jaehee, a research fellow at the Korea Insurance Research Institute, released a report titled "Challenges and Tasks for New Growth: Exploring Domestic Insurance New Markets through Coverage Gaps," which contained these insights.

Son stated, "As various environments change, including shifts in household structures, the rise of the MZ (Millennial + Z) generation, climate change, and accelerated digitalization, the deepening aging population, consumers' lack of savings capacity, and low awareness of retirement risks are increasing coverage gaps in retirement and health. The growth of platform businesses is also causing instability in income flows related to various liability risks and workers involved," he diagnosed.

He analyzed that the risks insurance companies should focus on in this trend are retirement, health, liability, and income flow-related risks. Accordingly, he argued that insurance companies should first develop personal pension products reflecting consumer demand related to retirement and enhance incentives for subscription by easing the requirements for housing pensions and diversifying products.

Source=Korea Insurance Research Institute

Regarding online platform transactions, he emphasized that various risks can arise during related consumer activities and that 'embedded insurance' (insurance products or services included in products or services provided by non-insurance companies) should be utilized more.

He also stressed the need for responses such as collaborating with fintech companies to provide products and services that can mitigate the irregular income flows of 'gig workers' (short-term workers).

To target these new markets, he explained that it is commonly necessary to secure data and strengthen collaboration for product and service diversification. Son advised, "For new products and services to be stably established and grow in the market, it is important to commercialize unexperienced risks as stably as possible," adding, "Furthermore, institutional and regulatory improvements should be pursued to raise risk awareness through cooperation with the government and to provide innovative insurance products."

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