"Insurance Companies Must Train Experts in Trusts, Data Analysis, and Risk Assessment"

Korea Insurance Research Institute

[Asia Economy Reporter Oh Hyung-gil] In preparation for the expected increase in trust demand due to the rise in single elderly households and the number of deaths, there are calls to train data analysis experts who possess both technical skills related to data analysis and insurance industry knowledge, centered around insurance planners.

On the 28th, Lim Joon, a research fellow at the Korea Insurance Research Institute, stated, "Comparing the growth and profitability of the insurance industry since 2013, both growth and profitability have deteriorated compared to before," and suggested, "To enhance growth and profitability, it is necessary to promote the advancement of human resources considering demographic changes, digitalization, and the evolution of risks."

Researcher Lim predicted, "As the baby boomer generation enters the stage of widespread mortality, the number of deaths will continue to increase until 2060," adding, "With the rising proportion of elderly among single-person households, trust demand will also increase, and we must respond accordingly."

Regarding digitalization, he analyzed, "From the perspective of corporate human resource management, the question previously raised about data analysis experts was mainly 'Are data analysis experts really necessary?' Recently, however, the importance of data analysis experts is naturally accepted, and the focus has shifted to what kind of personnel to hire and how to organize them within the organization."

He continued, "Under the current education system, there are limitations in cultivating excellent data analysis experts," advising, "It is necessary to develop programs to nurture experts who possess both technical skills related to data analysis and business capabilities related to the insurance industry."

Additionally, Researcher Lim pointed out, "The insurance industry has grown mainly around risks related to death, health, and automobiles, but it needs to expand to newly emerging risks such as climate change, pandemics, and cyber risks," emphasizing, "Since accident statistics are not sufficiently accumulated, it is difficult to actively underwrite solely based on empirical methods of premium calculation or underwriting."

He particularly criticized the current domestic insurance industry for having a workforce structure centered on actuarial science, mathematics, and statistics, which limits the pioneering of insurance markets that require expertise in engineering or other natural sciences.

He added, "It is necessary to train risk assessment experts based on natural sciences such as engineering, meteorology, and geology, who can theoretically predict risks in advance."