67th Anniversary Ceremony Held
Shin Changjae, CEO and Chairman of the Board of Kyobo Life Insurance, emphasized on August 7 at the "67th Anniversary Ceremony" held at the Kyobo Life Insurance Building in Jongno-gu, Seoul, that "in order to survive and achieve sustainable growth in the market, we must transform into a more customer-centric company than we are now."
In his commemorative speech, Shin diagnosed that the insurance industry is facing worsening growth, profitability, and soundness due to structural issues such as low growth, low birth rates, and an aging population, compounded by economic recession, interest rate cuts, and strengthened financial soundness regulations. He stated, "In order to overcome this crisis, the insurance industry is engaging in excessive competition to secure Contractual Service Margin (CSM), which is making the market even more chaotic." He added, "It is regrettable that the damages caused by overheated competition within the industry are falling entirely on good-faith customers."
This concern is based on the situation revealed by the recent on-site inspection by the Financial Supervisory Service, where, in just the first quarter of this year, over 100 billion won was spent on scouting costs for corporate insurance agency (GA) planners, leading to excessive scouting competition in the insurance industry and resulting in consumer damages such as policy replacements and incomplete contracts.
Shin stated, "Even if the insurance market becomes chaotic, Kyobo Life Insurance must properly communicate to customers and the market the noble spirit of life insurance, which is to provide protection in times of adversity, and put this into practice in our sales and marketing." He added, "A company that fails to be chosen by customers in the market can never survive." This underscores the need to transform into an even more customer-centric company in order to survive and achieve sustainable growth in the market.
Shin also called on employees to strengthen their artificial intelligence (AI) literacy. He said, "The ability to utilize AI technology has become a core competitive edge in the insurance industry," and urged, "We must become a leading company in digital transformation by integrating AI technology into every business process to provide customers with differentiated experiences and value."
Shin concluded, "Kyobo Life Insurance will continue to pursue outstanding management performance through relentless innovation and strive to become a sustainable company that lasts for 100 years by seeking shared growth with various stakeholders."
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