Chairman Kim Yong-duk of the Korea General Insurance Association of Korea (GIAK) said changes have never before seen are emerging around us caused by the 4th Industrial Revolution. Every social sector is busy coping with related changes caused by technologies like AI and Blockchain, and a rapid aging society.
The non-life insurance sector is one of them, he said. Kim said if we take the entire society as one ecological system, the future of the non-life insurance “should be like water.” The non-life insurance industry should be ready to cope with all the changes about to emerge, the chairman said, and should be adaptable and flexible to fill in all gaps in its path.
The general insurance industry should work to develop all kinds of insurance products to be able to ward off any dangers associated with the changes.
They should be able to develop insurance products in areas not previously covered by general insurance products, such the risks from the development of new technologies and the loss of information on those technologies, the chairman said. The new insurance products and policies are needed to ensure stable lives in the rapidly changing social environment due to the rapid development of new technologies, the chairman continued.
Kim predicted that various reforms will be made in the various stages of the insurance business operations, including the development of new products, the review of insurance contracts and management, the payment of claims and other diverse areas, which will need the help of new technologies such as Big Data. They will make the insurance business operation more effective and convenient not only for insurance companies, but also for customers, the chairman said.
He noted that health care services would be one of the rapidly growing areas, with medical expenses rising due to the rapidly aging society. It would be a big help to relieve rising medical expenses. The insurance policies could make ICT and wearable equipment more affordable for people by covering them with proper insurance policies and products, Kim said. They will not only use discounts to cut the expenses, but also reduce medical costs to improve the health of the people, he predicted.
The general insurance business, which is related with so many industries if managed well, could light a spark under the sectors of the industries not yet opened up for business. For example, new insurance products for new risks of an industrial sector would ensure the growth of the industry and create jobs, Kim added.
In the past when the economy was growing fast, the auto insurance and insurance against damages, pave the way for the economy to grow unhindered, protecting society from damages. The non-life insurance sector did a lot for the sound national life by doing its job fully at various worksites to make sure that society would run smoothly, the chairman said.
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