The 4th Industrial Revolution is expected to open up a new world that humans have never experienced. The new revolution will emerge as a new paradigm for competition, changing the existing economic topography.
AI, Robotics, IoT Self-driven cars, Biotechnology, Big Data and other new technologies and systems will be included in the new revolution.
The technologies are approaching us either independently or in fusion with each other, with limitless expansion and in fearful fusion. The new revolution will bring many changes in the financial industry, with vast information from consumers’ financial records in the way of Big Data helping to create new financial products and services. IoT will make it possible for consumers to pay for products and services they purchased any time and anywhere.
AI will analyze the future movements of share prices and interest rates to play the role of an investment advisor. Blockchain, called the public transaction records, will rapidly replace banking transactions.
The insurance industry should use the new revolution as a chance to upgrade its productivity and effectiveness. The industry so far has been an “after service” industry, paying insurance money after an accident takes place, but the new revolution will turn the industry around to be a “before service” industry, with life insurance firms taking advantage of the new technologies included in the new revolution, providing all kinds of services to their clients, including health conditions, and charging insurance premiums based on their financial conditions.
The customers will be able to check their health conditions with wearable devices to measure blood pressure, hours of sleep and daily walks, and use Big Data to advise on their health conditions.
Korea Life Insurance Association (KLIA) was established in 1950 as a non-profit corporation and has remained committed to promoting common benefits for member companies and maintaining market discipline. In addition, it has contributed to the development of the life insurance culture. KLIA has 22 life insurers as full members and 2 associate members, Korean Re and IBK Pension Insurance.
Korea Life Insurance Industry
Momentum for the growth of the life insurance industry in Korea was kicked off in earnest in the 1960s, when the Insurance Business Law was enacted and savings campaigns for Korean citizens was implemented. Steps to deregulate the insurance industry were taken in the mid-1980s, allowing new companies into the Korean market. In the 1990s, the World Trade Organization was formed and Korea joined the OECD, accelerating the nation's globalization and deregulation.
In 2000's life insurers enhanced financial strength and competitiveness by achieving management innovation, improved financial structure, and introduced advanced systems for international conformity. They are making forays into foreign markets including China and India. The Korean life insurance industry recorded 89 trillion won in annual premiums received and 497 trillion won in total assets as of the end of March 2012, making it the world's eighth largest.
Future & Hope of Life Insurance Industry
In step with ongoing market trends toward specialization and diversification, the KLIA pledges its upmost efforts to contribute to developing the life insurance industry into the core industry armed with global competitiveness and universal banking insurance function through the spread of sound life insurance culture, future-oriented and advanced system and product development.
