Kim Cheol-ju, President of the Life Insurance Association, "Growing Internal and External Uncertainties... Actively Responding to Strengthened Soundness Regulations"

Kim Cheol-ju, Chairman of the Life Insurance Association, emphasized that he will actively respond to the strengthening of soundness regulations in the new year of Eulsa.

In his New Year's address on the 31st, Chairman Kim stated, "As difficulties in managing soundness are expected due to increased internal and external uncertainties, we will actively support the stable maintenance of key indicators such as liquidity, soundness, and financial stability."

Kim Cheol-ju, President of the Life Insurance Association.

Chairman Kim also pledged to enhance the reliability of insurance accounting. He said, "Since the implementation of the International Financial Reporting Standard (IFRS17), an overheated competition to secure Contractual Service Margin (CSM) has emerged, leading to a trend where financial authorities are strengthening insurance soundness supervision to supplement the current risk measurement methods of the soundness system and improve the reliability of financial information. We will support the stable operation of IFRS17 so that the credibility of insurance accounting can be increased."

Chairman Kim also committed to increasing consumer trust and fulfilling social responsibility. He stated, "In the life insurance industry, which guarantees the future of customers, consumer trust and the fulfillment of social responsibility are essential conditions for sustainable growth of the life insurance industry. We will prevent incomplete sales in the field and strengthen the sales responsibility of insurance solicitation channels."

He also emphasized discovering new growth engines for the rebound of the life insurance industry. Chairman Kim said, "Entering a super-aged society, we plan to strengthen the role of life insurance in the pension market through deregulation of pension products for retirement preparation and expansion of tax benefits, and to enhance the sustainability of death benefits. We will also make thorough efforts to improve public health and coverage through the tertiary insurance market such as disease and injury, thereby solidifying life insurance’s role as a social safety net."

Furthermore, Chairman Kim said, "Following efforts through the Insurance Reform Council, we will actively promote institutional improvements through close communication with policy authorities on tasks necessary for improving management conditions and developing innovative products and services. We will support the development of insurance services utilizing new technologies such as artificial intelligence (AI) and improve future insurance products and sales and management systems by increasing the utilization of big data such as public medical data."

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