Kim Joo-hyun and Lee Bok-hyun Meet Insurers: "Need to Expand Win-Win Finance and Improve Sales Practices"

Meeting Held with CEOs of 10 Insurance Companies

Heads of financial authorities met with CEOs of the insurance industry to urge for cooperative finance and requested improvements in unhealthy business practices and short-term performance focus.

On the 6th, Financial Services Commission Chairman Kim Ju-hyun and Financial Supervisory Service Governor Lee Bok-hyun held a meeting with insurance company CEOs at the Government Seoul Office, emphasizing these points. This meeting was part of a series of relay meetings in the financial sector following financial holding companies and banks, attended by the heads of the Life Insurance Association, the General Insurance Association, and CEOs of 10 insurance companies.

In his opening remarks, Chairman Kim said, "The foundation of insurance lies in the spirit of mutual aid among policyholders and long-term trust between policyholders and insurance companies." He added, "Given that policyholders are also facing difficulties due to recent high interest rates and inflation, I hope insurance companies will pay attention and show consideration to alleviate the hardships of policyholders as trusted partners."

He continued, "With the introduction of IFRS17, many changes have occurred not only in financial information but also in insurance product development, asset-liability management, and overall sales strategies. I hope efforts will be made to build long-term trust without focusing solely on financial performance."

He also called for improvements in business practices. Chairman Kim stated, "Compared to rapidly changing environments such as low birth rates, aging population, and digital transformation, the development of new insurance products is delayed, and sales channels still remain largely face-to-face, showing somewhat slow responses." He urged, "Please put more effort into innovating insurance products and expanding healthy sales channels to timely cover risks in the daily lives of the public."

Governor Lee also emphasized in his opening remarks, "I hope the cooperative measures currently being prepared by the insurance industry itself will be solidified to provide real benefits to the public." He stressed, "If insurance companies fulfill their social responsibilities during times when the economy of ordinary citizens is struggling, public trust in insurance will deepen further." He added, "Unhealthy sales practices aimed at short-term results ultimately become a burden for both insurance companies and consumers. We must establish sound business practices."

In response, the insurance industry agreed on the necessity of cooperation and announced plans to prepare detailed measures through internal discussions. The general insurance sector is considering lowering automobile insurance premiums by about 2.5 to 3.0% and minimizing increases in actual medical insurance premiums. The life insurance sector is considering lowering interest rates on policy loans and launching savings and pension insurance products targeted at youth and vulnerable groups.

On the 6th, at the Government Seoul Office in Jongno-gu, Seoul, Kim Joo-hyun, Chairman of the Financial Services Commission (right), and Lee Bok-hyun, Governor of the Financial Supervisory Service, are entering the meeting room at the CEO meeting of financial companies, the Financial Supervisory Service, and the insurance industry. The meeting was held privately. Photo by Jo Yong-jun jun21@