Insurance Current’Post Corona Insurance Industry’
Product control needs to be restrained as much as possible
Digital transformation, consumer protection needs to be innovated
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[헤럴드경제=한희라 기자]As the insurance industry faces a crisis of existence due to Corona 19 and digitalization, it was pointed out that regulatory innovation is urgent for sustainable growth.
On the afternoon of the 5th, the Korea Insurance Institute held a seminar on the’Post Corona Era Insurance Industry Debate’ via online broadcasting.
Soonchunhyang University professor Kim Hyun-soo, who served as the subject presenter, diagnosed that the insurance business that entered the digital age amid the Corona 19 shock under the title “Is the insurance industry sustainable?” is threatening industrial sustainability when evaluating the economy, population, consumer confidence, and regulations.
Professor Kim suggested corporate efficiency and government regulatory innovation as measures to break through the crisis.
He said, “It has been approved to include information technology such as non-medical health services and the use of big data and artificial intelligence (AI), shifting from the positive method of listing insurance business licenses by category to the negative method (listing only prohibited items). “We have to innovate the regulation.”
They argued that the government’s price control should be enforced according to strict principles, and that product development control should be restrained as much as possible.
It also ordered that capital regulations, including the New Payment Capability System (K-ICS), should improve regulatory predictability by maintaining consistency and transparency.
Former Finance Commissioner Lim Jong-ryong, who served as a keynote speaker on the day, said, “The insurance industry will face intensifying competition due to the era of low interest rates and excessive liquidity, non-face-to-face culture, constant uncertainty and volatility, entry into big tech, and expansion of insurance tech.” “The government needs to induce business innovation and reform insurance infrastructure along with digital support,” he said.