[GLOBAL FINANCE AWARDS] Kyobo Life Insurance accelerates digital transformation drive

INSURER OF THE YEAR / KYOBO LIFE INSURANCE

Kyobo Life Insurance headquarters building in Seoul (Kyobo Life Insurance)

Kyobo Life Insurance, one of Korea’s biggest life insurers, has picked up speed in its digital transformation efforts this year by innovating its traditional businesses and securing future growth engines.

According to Kyobo Life Insurance, the company reorganized its structure with a digital transformation, opening departments on digital strategy, digital new businesses and IT support.

The life insurer also implemented Amazon’s Public Cloud services in order to cope with the paradigm shift toward digitalization, setting up the cloud system for big data. The company said it expects the changes to lay the groundwork for digital transformation through data integration and the construction of common infrastructure.

In July, Kyobo Life Insurance became the first life insurer in the country to receive the Financial Services Commission’s approval for the government-led program, MyData, which is designed to give people more information and control of their finance data. The company is expected to become the first life insurer to begin providing services on MyData early next year, it said.

Putting more emphasis on digital transformation, the country’s third-largest life insurer introduced the system of having three CEOs in March with each leader being in charge of mid- to long-term strategic planning for sustainable management, asset management and management support and enhancing the competitiveness of the insurance business and strengthening internal stability, respectively.

With its total asset value standing at over 128 trillion won ($108.3 billion), Kyobo Life Insurance posted a net income of 656.5 billion won by the third quarter of this year despite growing uncertainties in the business environment such as prolonged low-interest rates and the introduction of new regulations.

The company also announced last month its plan to complete the process of going public within the first half of next year. The initial public offering will help the company expand its funding sources and convert itself into a financial group with a holding company, it added.

Kyobo Life Insurance became the country’s first life insurer to receive an A1 rating from Moody’s in 2015 and has continued to hold the grade for seven years in a row now. The company also achieved the title of being South Korea’s first life insurer to receive an A+ rating from Fitch Ratings in 2013.

By Kan Hyeong-woo(hwkan@heraldcorp.com)