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. email@example.com