Ahn Cheol-kyung, Director of Insurance Research Institute, "Cost-cutting-focused Digitalization and Face-to-Face Channels Have Limitations"

"Promoting Innovation in the Insurance Industry and Enhancing Contributions to Social Safety Nets and the Real Economy"

Ahn Cheol-kyung, Director of the Insurance Research Institute

[Asia Economy Reporter Oh Hyung-gil] On the 21st, Ahn Cheol-gyeong, President of the Korea Insurance Research Institute, pointed out that in an environment where the data- and platform-based digital economy is rapidly developing, digitalization focused on cost reduction and face-to-face channels have limitations in response. He advised that significant structural reforms are needed in products, channels, and capital to effectively respond to the digital non-face-to-face environment.

President Ahn diagnosed, "The core challenge of the insurance industry is effective digital transformation and building productive cooperation models," adding, "As non-face-to-face economic activities become routine, it is a time for deep reflection on how insurance companies, which heavily rely on face-to-face channels such as agents, will maintain consumer contact points."

President Ahn presented 'Coopetition' and 'Management Innovation' as this year's research directions for the Institute.

He suggested, "In a low-growth, non-face-to-face environment, it is necessary to expand the market through cooperation with companies and governments inside and outside the industry, and then enhance consumer welfare through fair competition to create a productive insurance ecosystem. It is essential to improve management innovation and the sustainability of the insurance ecosystem by readjusting business models that suppress profitability, enhancing appropriate risk management and management transparency, and strengthening risk selection capabilities through the use of big data."

The Institute introduced plans to promote research focusing on 'management innovation promotion' and 'management transparency enhancement' to increase the sustainability of the insurance ecosystem. Additionally, research focusing on 'coopetition' will be conducted to create a productive insurance ecosystem.

Furthermore, the Institute announced that it will operate the ESG (Environment, Social, Governance) Research Center and Mobility Insurance Center to monitor current issues in the insurance market this year, and actively respond to cross-industry issues through the Industry-Academia-Research Center.

President Ahn emphasized, "We will make every effort to disseminate research results in various ways, such as conducting both online and offline seminars in a non-face-to-face environment and producing video content for the general public, and by reflecting feedback from various social strata, we will strive to ensure that issue analysis and alternative proposals are unbiased."