This Year’s Insurance Company CEOs, Reappointment Is a 'Pipe Dream' (Comprehensive)

Five CEOs Changed or Announced Resignation in Two Months
Facing New Realities Like Digital and Contactless Transformations

Hong Bong-seong, President of LINA Life Insurance

[Asia Economy Reporter Oh Hyung-gil] There is a strong wave of generational change among insurance company CEOs. Following a large-scale replacement of insurance CEOs in the first half of this year due to deteriorating performance caused by low interest rates, low growth, and rising loss ratios, the heads of companies continue to be replaced one after another in the second half as well.

As the industry downturn prolongs and new trends such as digitalization and non-face-to-face services accelerate, it is interpreted that companies are choosing change over stability to seek survival.

According to the insurance industry on the 28th, five insurance company CEOs have changed or announced their resignation in the past two months.

At DB Life, at the shareholders' meeting held on the 18th, the agenda to appoint Kim Young-man, Vice President of DB Insurance, as the new CEO was unanimously approved. Lee Tae-woon, who led DB Life for the past six years, stepped down from his position.

CEO Kim joined DB Insurance in 1980 and has worked in the Guam branch, product development team, and management planning team. Since 2010, he has served as the head of DB Insurance’s management support office (CFO) and is regarded as a 'DB man.'

On the 16th, Hong Bong-seong, CEO of LINA Life, voluntarily announced his resignation. CEO Hong was a representative 'longest-serving CEO' who had led LINA Life since 2010.

In an email sent to employees, CEO Hong stated, "I will retire from the position of CEO of LINA Life as of December 31," and added, "I will serve as a mentor for the new management and provide necessary external support." He also explained that Vice President Jo Ji-eun has been designated as his successor.

Earlier this month, Beno?t Masle, CEO of BNP Paribas Cardif Life Insurance, resigned. The new head appointed is Oh Jun-seok, Executive Director in charge of new business development and strategy. CEO Oh is the first Korean CEO in the 18 years since Cardif Life was founded. Since joining Cardif Life in August 2017, he has been responsible for new business development and overseeing the credit insurance center.

Last month, insurance company CEOs were also replaced in succession. Curtis Jang, CEO of Prudential Life, which was incorporated as a subsidiary of KB Financial Group, stepped down after five years. Min Ki-sik, CEO of DGB Life, took over as the new head of Prudential Life. With Min’s move, the CEO position at DGB Life became vacant, and Kim Sung-han, formerly of Kyobo Life, moved to fill the role.

The only CEO who recently succeeded in renewing his term is Lee Hak-sang, CEO of Kyobo Lifeplanet. Since December 2013, when Kyobo Lifeplanet was launched, Lee has served as the head of the establishment promotion team and the inaugural CEO, leading the company for eight years.

The reason insurance company CEOs are caught up in generational change is attributed not only to accountability for poor performance but also to the reality of facing new changes such as digitalization and non-face-to-face services. Earlier this year, the departure of long-serving CEOs such as Lee Cheol-young, Vice Chairman of Hyundai Marine & Fire Insurance, and Cha Nam-gyu, Vice Chairman of Hanwha Life, marked the beginning of this generational shift.

The whereabouts of CEOs whose terms end at the end of the year are also drawing attention. Sung Dae-gyu, President of Shinhan Life, and Jung Moon-guk, CEO of Orange Life, both have terms ending in December this year. As both companies are accelerating their integration process targeting July next year, it is expected that the position of the integrated company’s CEO will be decided depending on who succeeds in renewing their term.

Yang Jong-hee, CEO of KB Insurance, who succeeded in a third term, is also approaching the end of his term. Kim Jung-nam, Vice Chairman who led DB Insurance for 10 years, also has a term ending at the regular shareholders' meeting in March next year.