Next President Confirmed for Korea Insurance Research Institute
Successors Undecided Despite Expiration of Terms for President Heo Chang-eon and Chairman Kang Younggoo
As Political Uncertainty Eases,
Hopes Rise for Resolving Delays in Insurance Sector Appointments
With the Korea Insurance Research Institute confirming its next president, attention is focusing on whether the appointment process for the heads of major institutions in the insurance industry, which has been delayed since last year, will now gain momentum. There is speculation that the personnel clock, which had been put on hold amid impeachment-driven political turmoil and uncertainty, may start moving again as the government structure regains a certain degree of stability.
According to the insurance industry on February 18, the Korea Insurance Research Institute recently decided to appoint Professor Kim Heonsoo of the Department of IT Finance and Insurance at Soonchunhyang University as its next president. This will be formally confirmed at a general meeting of members scheduled for February 24.
As the selection process for the Korea Insurance Research Institute enters its final stage, attention is naturally shifting to other related institutions. In particular, the Korea Insurance Development Institute and the Korea Fire Insurance Association have been without permanent heads for an extended period, drawing interest in the timing of the appointment of their successors.
Heo Chang-eon, president of the Korea Insurance Development Institute, completed his term in November last year. However, even the President Candidate Recommendation Committee, which is supposed to recommend his successor, has yet to be formed. Although his term has ended, he has remained in office and continues his work to this day.
The Korea Insurance Development Institute is a key infrastructure institution that calculates premium rates for major insurance products such as automobile insurance and indemnity health insurance, and manages insurance statistics and data. Because it is directly linked to the insurance premium system, concerns are being raised about the prolonged leadership vacuum. Within the industry, many see a strong possibility that the appointment process will proceed in the near future now that the government structure has stabilized.
Most past presidents of the Korea Insurance Development Institute, starting with its first president Kim Bongcheol, have come from supervisory authorities such as the Financial Supervisory Service and the Financial Services Commission. Although there have been a few private-sector appointees, such as former president Kang Ho, given that cooperation between the insurance industry and the financial authorities is particularly important at present, there is a prevailing view that this time as well, a candidate from the public sector is more likely to be appointed than someone from the private sector.
The situation is similar at the Korea Fire Insurance Association. Chairman Kang Younggoo’s term expired last year, but no successor has yet been appointed. The association is a fire safety and risk management specialist body closely linked to the non-life insurance sector, and traditionally, figures from the supervisory authorities have served as its head.
Industry insiders cite the political uncertainty that persisted after the martial law situation at the end of last year as the background to the delay in appointments at the two institutions. They explain that, as the regime structure was not clearly settled while the country went through a phase of insurrection and impeachment, personnel decisions across the financial authorities could not gain speed.
An insurance industry official said, "At that time, the regime structure was uncertain, so appointments of heads of affiliated institutions were naturally postponed," adding, "Now that the government structure has been reorganized to some extent, there is a high possibility that the process of appointing successors will also gain full momentum."
The Korea Insurance Development Institute faces medium- to long-term tasks such as overhauling the premium rate system and advancing data sophistication, while the Korea Fire Insurance Association must deal with issues such as rebuilding its headquarters and strengthening its risk management functions. Observers also point out that in a policy environment that is changing rapidly, the longer the leadership vacuum continues, the more the driving force for decision-making may be weakened.
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