The Korean economy is experiencing a slump due to global business slowdown and decline
of investment and export. In addition, slowdown of real economy and anxiety of the financial market
are increasing with the long-term trade dispute between the United States and China and export
restrictions of Japan. Especially, the market rate has rapidly decreased to the all-time low rate because of
increased external uncertainties.
Uneasy internal and external conditions are causing adverse effects on the growth, profitability and
financial situations of domestic insurance companies. The insurance industry is concerned to face
a greater crisis if the ultra-low interest rate continues with the decline of potential growth rate. Low interest
rate leads to poor growth and profitability of the insurance industry.
Decreasing interest rate would cause further decline of sales incentive by decreasing disclosed interest
rate of saving insurances. Sales of coverage insurances is likely to decline in the long run due to the
increase of insurance premium caused by the reduction of expected interest rate. Original insurance
premium of the insurance industry has shown negative growth for two consecutive years since 2017 due to
the decrease of sales of saving insurances and slowdown of growth of coverage insurances. Moreover, profitability
of the insurance industry will inevitably worsen with the expansion of secondary reverse margin, expansion
of legal reserve and variable insurance guarantee reserve, and expansion of issuance of equity securities.
Accordingly, Financial News and Korea Insurance Research Institute are jointly hosting the 12th Global
Insurance Symposium on the theme of 'Global Economic Uncertainty and The Risk of Insurance Industry'
to diagnose the crisis of the insurance industry caused by global economic uncertainties and to discuss the
survival strategy of insurance companies in the low growth, low interest rate environment.
At this symposium, we are going to take a look at the difficulties faced by insurance companies in the past
when global economic slowdown and low interest rate occurred. Current status of the economy and
insurance industry will be reviewed separately for overseas and South Korea. By coming up with
management strategies of insurance companies for survival in the low growth, low interest environment
divided into insurance product, sales channel, asset management and risk management strategies, we plan
to also discuss the policy directions for financial authorities.
Title : The 12th Global Insurance Symposium
Theme : Global Economic Uncertainty and The Risk of Insurance Industry
Date : October 23rd(Wed), 2019 09:00 ~ 15:30
Venue : GrandBallroom, Westin Chosun Hotel, Seoul
Host : The Financial News, Korea Insurance Research Institute
Sponsor : Financial Services Commission, Financial Supervisory Service,
Korea Deposit Insurance Corporation, Korea Life Insurance
Association, General Insurance Association of Korea,
Korea Insurance Development Institute
Contact : The 12th Global Insurance Symposium Bureau
Tel. 02-6965-0012, 0013 E-mail. firstname.lastname@example.org