President of Sonbo Association: "Strengthen New Insurance like Mobility and Pets and Restore Trust"

Korean Insurers Association Holds New Year Press Conference
'Promoting Future Growth, Reforming Practices, and Strengthening Insurance Fundamentals'

Jiwon Jeong, Chairman of the Korea Non-Life Insurance Association, is holding a New Year's press conference near Gwanghwamun, Seoul, on the 19th. (Photo by Korea Non-Life Insurance Association)

[Asia Economy Reporter Minwoo Lee] The General Insurance Association of Korea has set strengthening new types of insurance such as mobility and pet insurance, resolving outdated practices and work methods, and restoring consumer trust as its New Year's tasks. The association plans to proactively respond to changes in the market and domestic and international economic conditions while striving to solidify the insurance industry.

On the 19th, Chairman Jung Ji-won of the General Insurance Association held a New Year's press briefing and announced the key tasks for this year. The main tasks were summarized into three areas: ▲ Strengthening coverage for new risks in future society and securing industrial competitiveness ▲ Restoring consumer trust through innovation in outdated practices and work methods ▲ Creating a sound and sustainable growth environment through solidifying the insurance industry.

Specifically, the association emphasized further strengthening the role of the private safety net to prepare for large-scale disasters and other difficult situations. This month, a social disaster special clause was newly added to the citizen safety insurance. Additionally, since unexpected disasters such as the Itaewon crowd accident recently exposed coverage blind spots for minors, the association plans to support the passage of a legal amendment to include minors under 15 years old as insured persons for death coverage under the Commercial Act.

Efforts will also be made to discover new growth engines. The association plans to develop various customized products for pet insurance and support health management in detail, while also preparing standard models in advance for future mobility insurance products such as autonomous vehicles. It emphasized building a digital ecosystem unique to the general insurance industry and actively utilizing artificial intelligence (AI) and big data.

The association also pledged to restore consumer trust by changing outdated practices and work methods. To enable consumers to conveniently subscribe anywhere, it plans to activate recruitment methods using digital technologies such as video calls and mirroring. Since the Insurance Business Act is scheduled to be amended this year to allow the insurance association, rather than the Financial Supervisory Service, to handle general complaints, the industry and the association will establish a 'comprehensive complaint response control tower' to analyze and share potential and repetitive complaint factors and strengthen consumer protection.

At the same time, unreasonable payment standards and practices for actual medical expense insurance and automobile insurance will be improved. In line with the aging trend, the association will also improve long-term actual medical expense insurance and plans to prevent unnecessary insurance payouts caused by insurance fraud. Through these efforts, it aims to solidify the insurance industry's foundation and create an environment for sustainable growth.

Chairman Jung said, "To strengthen the essential value of general insurance, which is risk coverage, it is important to proactively respond to new environments," adding, "We will become a reliable stepping stone so that consumers can conveniently use insurance in their daily lives and feel its value through life-oriented insurance products."