Senior, AI, Overseas Markets... Insurers Kick Off New Business Ventures

Samsung Life Upgrades Senior Living TF to Senior Biz Team
Kyobo Life to Introduce 'Coverage Analysis AI Supporter' This Year
DB Insurance Establishes 'Overseas Strategy Headquarters'

Insurance companies are actively pursuing new business initiatives at the beginning of the year. Their strategy is to respond to demographic changes such as low birth rates and aging populations, and to secure future revenue sources through the advancement of artificial intelligence (AI) technology and the development of new markets.

According to the insurance industry on the 15th, Samsung Life Insurance upgraded its Senior Living Task Force (TF) to the Senior Biz Team through an organizational restructuring this year. The temporary organization created under the Planning Office last year to promote senior business was formalized into a team, signaling a strategy to fully launch the nursing care business starting this year. Samsung Life also noted that inquiries about the insurance claim trust, which became available from November 12 last year, have recently increased, and they expect it to establish itself as a new revenue source this year. Hong Won-hak, CEO of Samsung Life, said in his New Year's address, "This year, we will challenge new businesses such as healthcare, trusts, and senior services to become a company that leads overall lifestyle finance."

Hana Life also recently approved the establishment of a nursing care business subsidiary at its board meeting. Hana Life plans to open a day care center in the second half of this year and build a premium nursing facility near Seoul in the second half of next year. The company intends to develop the business in line with 'Hana The Next,' a senior-specialized brand launched by Hana Financial Group in October last year.

An illustration depicting ChatGPT's description of an insurance company's entry into the senior business sector. Provided by ChatGPT.

KDB Life Insurance added the opening and operation of day care facilities and the provision of long-term care services as ancillary businesses to the Financial Supervisory Service last month. This is to open a day care center in Jichuk-dong, Deogyang-gu, Goyang-si, Gyeonggi Province in March. It is expected to be the third day care center in the life insurance industry following KB Life Insurance and Shinhan Life. KDB Life is also considering spinning off a dedicated nursing care business organization depending on future business performance, similar to these life insurers.

New business movements related to AI are also active. Kyobo Life Insurance plans to officially introduce the 'Coverage Analysis AI Supporter,' designated as an innovative financial service by the Financial Services Commission at the end of last year, this year. The AI Supporter is a service that uses AI to easily summarize a vast amount of coverage analysis and deliver it to agents. It was developed with the intention of recommending customer coverage-centered products rather than insurance products favorable to agents in terms of commissions. Kyobo Life plans to accelerate AI services this year, appointing Shin Jung-ha, the eldest son of Shin Chang-jae, CEO and Chairman of Kyobo Life, as an executive director in charge of AI utilization and customer voice data through last month's regular personnel appointments.

KB Insurance established an AI Data Analysis Part under the DT (Digital Transformation) Promotion Headquarters in this year's organizational restructuring. The purpose is to strengthen capabilities for pursuing new businesses based on digital and data.

There is also a trend toward actively targeting overseas markets. DB Insurance established the Overseas Strategy Headquarters, a higher organization overseeing the existing Overseas Strategy Part and Overseas Management Part, through this year's organizational restructuring. DB Insurance currently has branches in New York, California, Hawaii, and Guam. To strengthen local sales in the U.S., they appointed Kim Nam-yoon, a former New York branch manager, as head of the Overseas Strategy Headquarters.

Hanwha Life is also expected to solidify its position as a global comprehensive financial group under the leadership of Kim Dong-won, Chief Global Officer (CGO, President) and second son of Hanwha Group Chairman Kim Seung-yeon. In November last year, Hanwha Life signed a stock purchase agreement to acquire 75% of the U.S. local securities firm Velocity. Once acquisition approval is granted by regulatory authorities in both countries, it will be the first case of a domestic insurance company acquiring a U.S. securities firm. Hanwha Life plans to directly sell financial products in the U.S. by leveraging Velocity’s infrastructure and network. Hanwha Life has steadily expanded its global capabilities, acquiring Indonesia’s liability insurer Lippo Insurance in March last year and investing 40% in Indonesia’s Nobu Bank in April.