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Distinguished guests from Korea and elsewhere,
I would like to extend my warm welcome to all participants in the Global Insurance Symposium 2008,
which is hosted jointly by the Korea Insurance Research Institute and the Financial News.
The Korean insurance industry stands at an unprecedented crossroads. Internally, the industry will soon
witness the full effectuation of the Capital Market Consolidation Act (set for February 2009), and an
overall revamping of the Insurance Business Act. Externally, the industry must prudently navigate the
rough waters of a financial crisis originating from the U.S. that has rocked the global financial market.
These are indeed tough challenges for those of us in the insurance industry to take on and overcome.
Barriers between different market segments no longer exist in an advanced financial industry. Gone is
the era when the insurance, banking, and brokerage industries flourished within their respective business
boundaries. It would now be fair to say that the real rivals of insurance firms are not insurers, but rather large
banks, investment banks, and brokerage houses. Even in the same insurance business sector, life and
non-life insurance firms are advancing into each other’s turf without any reservation.
The world’s largest insurance-focused financial group, which Korean institutions have sought to benchmark,
is struggling to overcome a pressing financial crisis. This indicates that establishing a Korean-style,
insurance-centered financial group armed with global competitiveness is far from an easy goal to attain.
Amid these circumstances, this year’s symposium has been arranged to provide an opportunity to
examine the current situation of the Korean insurance industry, and to set the direction for the industry
to move forward. The Korean insurance industry still has many lessons to learn from the pool of experience
in advanced financial markets, including those of the U.S., Australia and Hong Kong. I sincerely hope all
of you, who have taken time out of your busy schedules to attend this symposium, will discover important
opportunities through this event.
I wish for your continued success in this auspicious, harvesting season.
Jun Jae-ho,
President & CEO,
The Financial News
Distinguished guests from Korea and elsewhere,
It is my great pleasure to welcome you to the “Global Insurance Symposium 2008.”
The Korean financial industry is embracing an unprecedented wave of changes ahead of the effectuation
of the Financial Market Consolidation Act, which is scheduled for February 2009. The banking sector,
which has completed its transition into a holding company scheme, is heralding a major reshuffle through
large scale M&A deals, while the securities business community is spurring efforts to gain the upper hand
in the investment banking sector.
The insurance industry is not an exception to the prevailing trend of changes in the market. The government
is taking steps to seek a major revision to the Insurance Business Act during this year’s regular session
of the National Assembly with a view to increasing the industry’s international competitiveness. Once the
revision bill clears the Assembly, barriers between different segments of the insurance industry will likely
be dismantled, while insurance holding firms will emerge. Also, measures will be devised to provide
customers with ‘one-stop comprehensive financial services,” encompassing sales of not only insurance
products but also investment funds. An M&A drive could also gather momentum, as rival firms scramble to
boost competitiveness.
Considering that the Korean insurance industry ranks seventh in the world (in terms of cumulative premiums
paid as of 2007), the growth pace of the insurance sector is relatively slower than that of other industries,
including the banking and brokerage sectors. However, the winds of change sweeping the domestic and
foreign financial markets will not allow the local insurance industry to derive comfort from the status quo.
Internally, key tasks facing the industry, including the listing of life insurance firms, have yet to be completed.
Externally, a major U.S. insurer, which has been considered the largest and best insurance company in
the world, is embracing a financial crisis caused by subprime mortgage woes, a harsh reality facing the
global financial market.
The Global Insurance Symposium 2008 has been organized to shed light on the current situation faced
by the Korean insurance industry amid this storm of changes, and to allow the Korean insurance sector
to set the direction in which to move forward by learning from the examples of advanced countries, including
the U.S., Australia and Hong Kong. I sincerely hope that this event will serve as an important opportunity
for all participants to be inspired and to discover a vision for the future.
Cho Young-kwon,
Publisher,
The Financial News