ladies and gentlemen,
Welcome to Seoul.
Let me thank
President 마이클 모리세이
and Chairman 노만 소렌슨 of
the International Insurance Society (IIS)
for this wonderful event.
I also want to thank
Chairman 김규복 of
the Korea Life Insurance Association,
and Chairman 문재우 of
the General Insurance Association of Korea
for the excellent organization.
The IIS is honored as a leading industry forum.
Insurance leaders come to
study trends, exchange ideas,
and shape the future.
Seoul is not new to this.
In 1987, it held
the 23rd IIS Annual Seminar.
At the time,
Korea’s insurance industry was
just beginning to open its doors
to the world.
This time around,
the insurance industry is ready to go global.
It is ready to share experience.
Today's Annual Seminar will mark
a new chapter of Korea's insurance industry.
II. Korean Economy and Insurance Industry
Ladies and gentlemen,
Korea is a remarkable success story.
It is the first country in history
to go from an aid recipient
to a donor country.
The insurance industry was
a major part of the story.
First, insurers supported
economic activities in all sectors―
by providing insurance
for incidental losses.
Second, capital from insurance
was channelled to the real economy―
through bond investments and loans.
Last but not least,
the insurance industry created
more quality jobs.
The industry itself
grew dramatically in the course.
From 1987 to 2012,
its total assets jumped 36 times
from 18 billion US dollars
to 650 billion US dollars.
But—I am not here to
highlight the accomplishments.
I want to shed light on the challenges—
and talk about the future.
III. Challenges and Future
Let me start with—the challenges.
Korea’s insurers are facing new challenges—
both externally and internally.
On the external front,
global economic recovery remains weak.
Countries have less policy room,
due to accommodative policies.
Small open economies like Korea
are exposed to external conditions.
On the internal front,
population is rapidly aging.
Potential growth is slowing.
Concerns of a “low-growth era”
Meanwhile, consumer protection is
becoming more important.
In this context,
the insurance industry needs to
find a new paradigm for growth.
The paradigm that it used during
high interest rates and strong growth
will not work anymore.
This challenge is not unique to Korea.
It is a challenge shared by all insurers
across the world.
That brings me to—the future.
How the insurance industry should
respond to the different trends?
how it can turn new challenges
into new opportunities?
Let me talk about this
on a trend-by-trend basis.
low growth and low interest rates.
This environment will cause changes
in the overall financial industry—
especially the insurance industry.
The insurance industry is easily influenced
by growth rates and interest rates.
For example, bond investments,
which account for a major share
of insurance asset management,
are highly exposed to
interest rate fluctuations.
So, the insurance industry needs to
take preemptive action.
Insurers should improve balance sheets
through Reserve accumulation
and risk management.
But efforts should not stop there.
The insurance industry needs to
explore the so-called “white space.”
The starting point is the basics.
This means―insurers should
sharpen their competitive edge by:
enhancing underwriting capacity,
developing new insurance products,
and improving asset management ability.
the world will soon enter
the “Homo Hundred” era.
this is quickly becoming a reality.
Life expectancy is rising,
while fertility rate remains low.
This trend will definitely bring challenges.
But it will also mean opportunities
for the insurance industry.
Higher life expectancy means
more years in retirement.
And people do not want to
simply “live longer.”
They want to “live longer
in good health and happiness.”
So there is a growing demand for
pension and health care insurance.
insurers must come up with
a wide range of new products
for the aging population.
Fortune favors the prepared.
By preparing for the aged society,
insurers can fully take advantage of
the emerging demand.
They can also fulfill
their social responsibility.
Third and final trend:
Weak consumer protection will
result in low consumer confidence.
And low consumer confidence will
severely impact the financial industry.
This was well demonstrated by
the worldwide “Occupy” movement.
Consumer protection is particularly
important for the insurance industry.
Insurances are guarantees
for 10 to 20 years.
So, interactions with consumers
should go from one-way to two-way.
Protecting consumers, such as
preventing incomplete sales,
will not be enough.
Insurers must listen to consumers
and actively reflect their views
in the products and services.
Ladies and gentlemen,
In times of uncertainty,
it is hard to prepare for the future.
But we should remember—
every cloud of uncertainty offers
a silver lining of opportunity.
Winston Churchill once said,
“The pessimist sees the difficulty in every opportunity,
the optimist sees the opportunity in every difficulty.”
I choose to be an optimist.
If we identify trends and “ride” them,
the opportunities will outweigh
I think this year’s seminar,
“Future of Insurance: Reshaping the Industry
to Capitalize on Global Trends,”
is very timely.
After you discuss the global trends,
please experience the cultural trends of Korea.
See the Korean culture with your eyes.
Feel the Korean Wave with your heart.
Then, you will truly appreciate 강남 스타일.
|이전글||금융정책의 방향 및 금융산업 비전 기조연설|
|다음글||2013 임시국회 업무현황 인사말씀|