Financial Services Commission “Activation of pensions and special insurance for the elderly…Support for retirement income”

Experts attending the meeting and officials from the Financial Services Commission predicted that the profitability and growth potential of the insurance industry would fall if not responding quickly to environmental changes such as low growth and low interest rates, demographic changes, and digital technology innovation.

In addition, it was diagnosed that the demand for insurance-type insurance for pensions and the elderly is increasing due to the change in the demographic structure, and the market concentration of insurance products that support retirement income such as pensions is high.

It was also noted that competition in the insurance industry is expanding through digital technology-based innovative services, and in this process, the market structure can be improved, such as changes in insurance company management strategies, business structure improvement, and mergers and acquisitions.

Based on the results of these discussions, the Financial Services Commission decided to improve the system together with the insurance industry to activate pensions, variable insurance, insurance for senior citizens, and insurance for chronically ill patients using health data.

It is discussed how to increase the pension for the elderly, activate the pension insurance by inducing it to be possible for the pension even if the elderly are not elderly, or expand the insurance-based insurance specialized for the elderly over the age of 60.

Along with this, the Financial Services Commission plans to conduct industry briefings, opinion gatherings, and demand surveys in the second quarter ahead of the introduction of a small short-term insurance company in June. This is because the small and short-term insurance company system needs differentiated sales channels and product competitiveness with existing insurers to succeed.

In the approval review process, he said that he would sufficiently examine the feasibility of the business plan, such as sales channels and product competitiveness.

Earlier, the Financial Services Commission announced that it would significantly ease the requirements for establishing capital for small-term insurance companies from 30 billion won to 2 billion won. Accordingly, a specialized’mini insurance company’ that guarantees various risks in daily life such as weather insurance, dog insurance, and travel insurance is expected to emerge.

One financial group is also planning to flexibilize the’one company, one license’ rule that allows one license for each of life insurance and non-life insurance.

According to the regulations, one financial group must in principle merge to acquire a new insurance company, and separate sales channels to obtain multiple licenses.

In this regard, the Financial Services Commission decided to carry out policy research services during the first half of the year and establish detailed standards for flexible one company, one license permit policy.

In addition, while allowing platforms such as Big Tech to enter insurance agencies, it plans to expand sales channels for simplified small insurance products, and develop indicators that can easily compare the value of complex insurance products.

In order to establish a fair order of competition between the platform and existing sales channels, a discipline system for platform-based insurance services was also set up during this year.

The Financial Services Commission plans to materialize these policy initiatives and reflect them in the’Insurance Industry Trust and Innovation Roadmap’ announced later this month.

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2021/02/09 06:00 sent