S.K.’s FSC chairman urges insurers to enhance CSR amidst financial challenges

The meeting was part of a series aimed at fostering close communication and mutual understanding between regulatory authorities and the financial industry.

Chairman Kim Joo-hyun of South Korea’s Financial Services Commission (FSC) held a meeting with CEOs of major insurance companies and Governor Lee Bok-hyun of the Financial Supervisory Service. 

The meeting was part of a series aimed at fostering close communication and mutual understanding between regulatory authorities and the financial industry.

The meeting emphasised the importance of CSR. Chairman Kim urged insurance businesses to play a more active role in helping customers facing financial difficulties amid high-interest rates and inflation. 

He encouraged insurers to contribute to alleviating the challenges faced by their customers.

Chairman Kim also discussed the ongoing changes in the insurance sector with the adoption of IFRS 17. He highlighted that these changes extend beyond accounting practices and also impact product development, asset and liability management, and sales strategies. 

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He further stressed the importance of ensuring that these changes benefit both financial performance and long-term customer trust.

Recognizing the challenges posed by a low birth rate, an ageing population, and digital transformation, Chairman Kim underscored the need for the insurance industry to find new avenues for growth. He assured that the government would support innovation and the growth of the insurance sector through regulatory improvements.

During the meeting, insurance companies and industry groups expressed a shared understanding of the importance of strengthening corporate social responsibility. 

They committed to introducing specific measures after engaging in industry-wide coordination. The discussions aimed to foster a collaborative approach between regulators and insurers to address challenges and promote responsible and sustainable practices within the insurance sector.