Lee Bok-hyun urges coexistence finance again... "Insurance companies should share the burden of ordinary people"

Financial Supervisory Service Chief Emphasizes at Seminar with Insurance Company CEOs

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), urged insurance companies to share the burden of ordinary citizens during difficult times for the national economy and called for cooperative finance.

According to the FSS on the 16th, Governor Lee emphasized this in his congratulatory speech at the 'Insurance Company CEO Seminar' hosted by the Korea Insurance Development Institute the previous day. He stated, "Amid the ongoing global environment of high inflation and high interest rates, insurance companies are facing difficulties in managing risks related to major investment assets such as long-term bonds and alternative investment assets," adding, "At the same time, the insurance industry’s attention and consideration for the increasing hardships faced by ordinary citizens in this high interest and high inflation environment are becoming more important."

With the introduction of the new accounting standard IFRS 17, the insurance industry is facing a turning point in both domestic and international environments. Therefore, it is essential to thoroughly prepare for risks, promote ICT innovation, and also emphasize trust and mutual development.

Governor Lee said, "Insurance is based on trust and the spirit of mutual aid, so forming a developmental relationship with the public, who are long-term customers and contract partners, is of utmost importance," and urged, "If insurance companies share the burden of ordinary citizens during these difficult times for the national economy, public trust in the insurance industry will deepen, and the foundation for sustainable growth will also be strengthened."

He added, "If the insurance industry continues to serve as a reliable pillar for the national economy as a long-term capital supplier during challenging times, it is expected to grow together with the national economy again and enjoy greater benefits."

About 40 CEOs from life and non-life insurance companies, along with the presidents of the Life Insurance Association, Non-life Insurance Association, Korea Insurance Development Institute, and Insurance Research Institute, attended the event. This is interpreted as a call for cooperative finance in the insurance sector as well, following renewed pressure for cooperative finance in the banking sector recently.