Hanwha Systems Partners with Two Actuarial Firms to Develop Experience Risk Rate System

Combining Actuarial Expertise and IT System Capabilities

Hanwha Systems, together with Seoul Actuarial Firm and Summit Actuarial Firm, will launch the development of a dedicated experience risk rate calculation system for life insurance companies.

The ICT division of Hanwha Systems announced on the 23rd that it had signed a Memorandum of Understanding (MOU) with the two actuarial firms. The three companies will combine their respective expertise to jointly develop an experience risk rate system tailored for life insurers.

Hanwha Systems signed a Memorandum of Understanding (MOU) with two leading domestic actuarial firms to establish a "Life Insurance Experience Risk Rate Calculation System." From the left, Seungwoo Ham, CEO of Seoul Actuarial Firm; Yunsu Kim, Head of Solution Business Division at Hanwha Systems; Byungrok Jung, CEO of Summit Actuarial Firm. Photo by Hanwha Systems

The experience risk rate is a key indicator used by insurance companies to calculate the probability of incidents and appropriate premiums based on their own statistics. Until now, premiums have been set using data compiled by the Korea Insurance Development Institute for each product. However, due to recent changes in product structures centered on health insurance and the planned transition in the Institute's statistical aggregation method (scheduled for July 2028), there is a growing demand for company-specific risk rate calculations.

Hanwha Systems will contribute its experience in building insurance IT systems and its large-scale data processing capabilities, while the two actuarial firms will provide their expertise in product design and statistical analysis. Yunsu Kim, Head of Solution Business Division at Hanwha Systems, stated, "This MOU will serve as a catalyst for data-driven innovation in the life insurance industry," adding, "We will continue to develop and provide various insurance systems to help domestic insurers create competitive insurance products."