Jeong Hee-su Appointed Next Life Insurance Association President...First 'Politician' Origin Association President (Comprehensive)

Selected Sole Candidate by Life Insurance Association Election Committee
Three-term Lawmaker with Economic Expertise
"Expected to Facilitate Communication Between Politics and Industry"

[Asia Economy Reporter Oh Hyung-gil] With Jeong Hee-su, head of the Insurance Training Institute, being nominated as the next chairman of the Life Insurance Association, the life insurance industry will see its first-ever chairman with a political background. Recognized for his expertise as an economic specialist and his experience as a three-term National Assembly member and chairman of the National Assembly’s Planning and Finance Committee, he is expected to represent the industry's voice on current insurance issues.

The Life Insurance Association held its second meeting of the Chairman Recommendation Committee (CRC) on the 26th and selected Jeong as the sole candidate for the 35th chairman. The CRC included representatives from five board companies?Samsung, Hanwha, Kyobo, NH Nonghyup, and Mirae Asset Life?as well as external recommended members such as Jang Dong-han, president of the Insurance Society, and Seong Ju-ho, president of the Risk Management Society.

A CRC official said, "Although time was tight for candidate selection, we made the decision considering that some individuals declined the candidacy. We expect that as head of the Training Institute, he is well-versed in insurance issues and will effectively convey industry opinions."

Jeong, born in 1953, graduated from Daegu Commercial High School and Sungkyunkwan University, and earned a Ph.D. in economics from the University of Illinois Graduate School. He worked at Daewoo Economic Research Institute and POSCO Management Research Institute before entering politics in 2008 as the former chairman of the Gyeongsangbuk-do branch of the then Grand National Party. He was elected as a National Assembly member for Yeongcheon, Gyeongbuk, for the 17th to 19th terms, and served as chairman of the National Assembly’s Planning and Finance Committee during the 19th term.

Once considered part of the "pro-Park" faction, he joined Moon Jae-in’s presidential campaign in 2017 and served as vice chairman of the Advisory Committee for the Integrated Government Promotion Committee. Since 2018, he has served as the 17th head of the Insurance Training Institute. Jeong had been regarded as a strong candidate after former Financial Services Commission Chairman Jin Dong-su and former Financial Supervisory Service Chairman Jin Woong-seop, both bureaucrats, declined candidacy amid concerns over the "Gwanpia" (bureaucrat + mafia) controversy.

During his tenure as head of the Training Institute, Jeong is credited with expanding specialized insurance education programs and leading new business initiatives such as knowledge content services.

The life insurance industry is placing hopes on a different approach with its first chairman from a political background. Since 2014, the Life Insurance Association has appointed private-sector chairmen such as former chairman Lee Soo-chang from Samsung Life and chairman Shin Yong-gil from Kyobo Life.

However, as regulations on the insurance industry have tightened in recent years, communication skills have become as important as expertise. The new International Financial Reporting Standard (IFRS 17) is set to be introduced in 2023, and the government and ruling party are currently pushing for mandatory employment insurance for special employment types such as insurance planners.

Although the industry experienced a brief boom this year due to the impact of COVID-19 and sales of savings-type insurance, structural challenges such as low interest rates and low birth rates persist.

A life insurance industry official said, "It has been difficult to properly convey the insurance industry's opinions to the National Assembly until now. We expect the association to take the lead in facilitating smooth communication with political and governmental circles."

Meanwhile, as the CRC selected a sole candidate, the Life Insurance Association plans to hold a general meeting on the 4th of next month, where member companies will proceed with the chairman election process.