"ESG Management, Enhancing Customer Trust and Laying the Foundation for Sustainable Growth"
Proposals for Institutional Improvements in Healthcare and Digital Innovation
[Asia Economy Reporter Oh Hyung-gil] On the 28th, Jung Hee-soo, Chairman of the Korea Life Insurance Association, stated, "Next month, together with CEOs of life and non-life insurance companies, we will declare the practice of 'Environmental, Social, and Governance (ESG)' management for the first time in the financial sector." The insurance industry plans to enhance customer trust and establish a foundation for sustainable growth through ESG management.
At a non-face-to-face press conference held that day, Chairman Jung said, "Globally, awareness of corporate ESG risk management and responsible investment is gradually increasing."
After the declaration ceremony, individual insurance companies will autonomously prepare promotion plans according to their company size and management conditions. The industry will also promote the formation of a consultative body to mutually support the exchange of ESG-related information among insurers and the establishment of ESG systems.
Chairman Jung also said, "The insurance industry is sustainable based on customer trust, and enhancing consumer trust is essential for continuous growth," adding, "To strengthen consumer trust, we will discover and promote businesses in all aspects, including consumer protection policies and service areas."
First, to ensure the smooth implementation of the 'Financial Consumer Protection Act' effective on March 25, the association plans to serve as a bridge between financial authorities and the life insurance industry and provide thorough guidance to consumers regarding their rights.
Additionally, the association will seek ways to efficiently share simple insurance complaints with the Financial Supervisory Service, and through reviewing guidelines for protecting elderly consumers, it will inspect shortcomings related to vulnerable groups and implement preventive measures to avoid damages.
"Request to Authorities to Strengthen Tax Benefits for Pension Insurance"
To expand new growth engines in the insurance sector, the association will also promote the expanded use of public health medical data and the enhancement of pension insurance benefits.
Chairman Jung explained, "Although the amendment of the Personal Information Protection Act allows the use of pseudonymized information for industrial research purposes, institutions such as the National Health Insurance Service and the Health Insurance Review & Assessment Service do not open health medical pseudonymized information to insurers," adding, "We will form a consultative body to discuss mutual cooperation plans and tasks to revitalize the use of health medical data."
To increase pension subscriptions, the association will prepare measures to strengthen the tax benefits of pension insurance, which currently has a combined limit of 7 million KRW for individual and retirement pensions, and propose them to tax authorities.
Regarding healthcare business, the association will request the Financial Services Commission to revise the 'Guidelines for the Development and Sale of Health Promotion Insurance Products' and the Ministry of Health and Welfare to revise the 'Guidelines and Casebook for Non-Medical Health Management Services.' It plans to support insurers in obtaining certification related to the introduction of a certification system to activate health management services, which will start as a pilot project in the second half of the year.
Furthermore, Chairman Jung emphasized, "With the normalization of non-face-to-face culture, the need for non-face-to-face and digitalization in the insurance sales process is increasing," and stated, "We will promote innovation in insurance subscription procedures in line with changes in the insurance environment, such as the expansion of artificial intelligence (AI) and mobile-based technologies and services, and the increase in non-face-to-face consumer demand."
To this end, the association plans to introduce mobile subscription procedures and simplify processes, expand the application and utilization of AI in insurance consultation and subscription planning, and promote non-face-to-face sales using video call apps.
Chairman Jung concluded, "The life insurance industry is currently facing a more serious and difficult situation than ever before," and said, "We will do our utmost with a resolute attitude to overcome the management crisis of the life insurance industry."
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