Kim Cheol-ju, President of the Life Insurance Association, "We Will Establish a Third Insurance Statistical Management System to Enhance Competitiveness"

Kim Cheol-ju, President of the Life Insurance Association, 100-Day Inaugural Meeting
Announcement of Core Business Competitiveness Enhancement and New Business Promotion Plans

"This year, we will establish a proper statistical management system in the third insurance market to secure competitiveness."

On the 19th, Kim Cheol-ju, Chairman of the Life Insurance Association, held a press conference at the Centerpoint Building in Gwanghwamun, Jongno-gu, Seoul, stating, "The reason life insurers have lagged behind non-life insurers in the third insurance market so far is because they have not properly established a statistical management system."

On the same day, Chairman Kim announced four major strategies and eight core tasks that the life insurance industry should pursue. This plan aims to drive a new leap forward for the life insurance industry, which has been stagnating due to demographic changes caused by low birth rates and aging.

Kim Cheol-ju, President of the Life Insurance Association.

The Life Insurance Association plans to strengthen the role of life insurance in the pension insurance market to enhance core business competitiveness. It also plans to support strengthening product competitiveness and market soundness in the third insurance sector. Although the third insurance market maintains an average annual growth rate of 7%, there is continued unbalanced growth between sectors, with the non-life insurance sector holding over 70% market share. Chairman Kim said, "To secure competitiveness in the third insurance market, we will expand flexibility in product development and support the discovery of new coverages with high consumer demand," adding, "In this process, fair competition rather than excessive competition must be ensured."

Support will also be strengthened to prepare new growth engines. Due to rapid demographic changes such as ultra-aging, the entry of the baby boomer elderly generation, and an increase in single-person households, demand for healthcare, nursing care, and silver housing is rising. Chairman Kim stated, "To provide total life care services that meet the public’s expectations, we will explore diversified business models focusing on healthcare, silver housing, and nursing care services," and added, "Since the promotion of the silver industry is also gaining consensus at the government level, various regulatory relaxations will continue."

Active support for overseas expansion will also be provided. The plan is to expand networks with financial authorities and others, focusing on countries with high growth potential such as Southeast Asia, and to propose necessary regulatory improvements.

There is also a plan to improve the deposit insurance rate paid to the Korea Deposit Insurance Corporation. Chairman Kim explained, "Last year, the life insurance industry paid over 700 billion won in deposit insurance premiums, which is about 14% of net income," and added, "An improved differentiated premium rate system is scheduled to be applied from 2026, and we will ensure that the characteristics of the life insurance industry are well reflected."

Measures to protect consumers and enhance trust will also be devised in response to excessive competition and clearance marketing of 'short-term payment whole life insurance.' Chairman Kim said, "We will focus on establishing a sound recruitment order and strengthening the competitiveness of sales channels," and added, "We will strengthen the sales responsibility of General Agencies (GA), establish a reasonable recruitment commission system, and also strive to enhance the professionalism of face-to-face channels."