Life is in full swing to ensure the financial soundness of NH NH - Korea gimmingyeong financial newspaper reporter] Secretary Rod president. Geotinde spiral contrast to the LAT · Enhanced RBC regulation of financial authorities, NH NH Life Insurance Unlike other insurance companies which concerns the interest rate risk on debt duration expansion comes the assessment that the relative burden of the enemy. Recent years, insurers have been selling coupon savings-type insurance products thanks to a focus on what is the interest rate-linked products with different days of cooperative association banks. The clerk rods president took office earlier this year, is expected to try and further said Plug a priority to secure financial soundness through improved capital raising and management constitution, with sales goals in risk management.
FSS has recently Risk Management Division of Insurance to the new international accounting standards (IFRS17) soft landing measures planned 2021 introduction of the liability duration naegeolmyeo expanding regulatory strengthening of the insurance companies emerged as challenges. Financial authorities have improved the insurance liability adequacy test (LAT) and the insurance solvency system (RBC), and said prospects continue to carefully check the financial strength of insurance companies. LAT is the cash inflows and outflows in the future, according to the insurance contract and the system for calculating the change required reserves at the present value RBC system is to assess whether the degree of capital afford to pay the insurance payout to policyholders.
Financial authorities proceed with the insurance liability adequacy test (LAT) over three years, and this year decided to gradually market assessments of liabilities (insurance payable) of insurers. Thus the discount rate applied when evaluating the debt is expected to decrease by 80% compared to current levels. The financial authorities are under estimated to increase total liabilities of insurance companies up to 20 trillion won for three years.
Last month, the financial authorities have a final presentation to the insurer to determine the LAT revised plans for containing a soft landing IFRS17 such information. After the introduction IFRS17 insurers will evaluate changes in insurance market to give back to the Contractor at the current cost. The interest rate to reflect the time of registering to calculate liabilities under insurance and so increase the burden. Eventually losing the equity accounting results in the conclusion that debt is bound to increase significantly. The June revised insurance solvency system (RBC) Since the end comes into force. Accordingly, insurers are required to extend the duration of insurance liabilities (residual maturity) to 30 years by 2018. After only increased debt duration without a change in the duration of the asset situation, the insurer is exposed to interest rate risk on the defenseless. Eventually inevitably lead to an RBC ratio also increased sharply because jabonryang required by the insurance company rate risk amount neulmyeon.
Most insurance companies are situation, but the appearance has been confirmed massive selling interest type insurance liabilities, grab the ankles should be in a stable long-term investment assets in order to expand the asset duration. Because the world of low interest rates is a prolonged decline in the investment concerns caused the negative margin was unable to raise the rate of return on investment as promised grown with customers.
◇ rate determinate savings insurance ↓ negative margin was less concerned
NH NH reborn in the last cooperative association in 2012 as a privately held life insurance company has started a risk management system prior to upgrading other than insurance companies do not have much liability insurance rates determinate action.
Interest rate-linked savings insurance portion of the NH NH Life is 80%. Interest rate-linked products gotta adjust the interest rate paid to customers, depending on the outside margin and asset management market interest rates are less concerned about negative margin. In addition, RBC existing institutional rate-linked products are evaluated will be minimal impact on the liability duration expanded regulation of financial authorities because of the short duration debt.
NH NH lives officials because they have "recently because of liability duration enlarged strengthen regulatory insurance industry is trying to expand the asset duration" and "NH NH life linked to an asset or a liability duration at an appropriate level to the interest rate risk, even if the right regulations are enforced He said that the impact would not be at all. " Because risk management been keeping pace in the banking system from the deductible timing analysis is also dominant afford would be compared with other insurers.
NH NH Life has recently started building its own "risk and solvency assessment (Own Risk and Solvency Assessment, ORSA) system. ORSA is a system that calculates the internal capital requirements considering the insurers themselves qualitative risk assessment and crisis analysis and risk management, discovering vulnerabilities. It will spiral on one foot ahead of secured financial soundness, with guidelines of the financial authorities.
NH Agricultural finance is utilized, and also introduces the risk dashboard. Risk Dashboard is creating to allow fall into the piece all the details of risk management NH NH Life reports. NH NH Life official explained, "will focus on risk management by including indicators that may appear while expanding overseas investment this year, including foreign currency liquidity coverage and exchange rate fluctuations on the Dashboard checklist".
◇ 3000 billion subordinated debt issue
NH NH Life has posted recently had to issue 3,000 billion of subordinated debt. IPO issued in the currency subordinated unsecured debentures form and is representative of Sponsor SK Securities and HMC Investment Securities. 28 days are ahead of the bond issue.
NH NH Life reportedly to be issued in three types, depending on the maturity of this subordinated debt. △ 7-year 150 billion won 100 billion won △ 10 △ 10-year-year (5-year call options) and interest rates are respectively 50 billion won △ 3.15 ~ 3.65% △ 3.47 ~ 3.97% △ 3.17 ~ 3.57%. NH NH predicted that life could be issued in three types of subordinated bonds with pre Forecasting accommodate the diverse needs of investors.
Subordinated debt issued by the NH Agricultural Life is the first time. Officials "decided the issue in a pre-emptive recapitalization purposes against IFRS17 enforcement and RBC ratio dropped late last month in the Council," he said. The subordinated bonds issued by NH NH life being expected to be an RBC was only based on 207.7% level of the end of June last year to improve approximately 15.3% point to the 223%. RBC is the average life insurance industry position that the problem because of the recommended level of the initial FSS had recorded the second quarter of last year, based on 297% maintained a 150% line.
NH NH life, with banks also followed the risk management system to decide this issue subordinated debt are adequate assessment clinch the recapitalization result. NH NH lives officials "received the highest rating of insurance solvency assessment AAA rating of the year two Korea Ratings and NICE credit rating late February," said said received recognition of stable financial soundness. In particular it was highly regarded point that farmers, based on the Livestock channel has an extensive sales network across the country and has the fourth largest life insurance market position in the industry with total assets and premium income. In addition, the viscosity that laying the substantial strengthening of protection-type insurance sales life insurance was mainly a high score.
◇ senior year banks from head ... Poised to strengthen the financial capacity
Second inaugural year, the clerk rods NH NH President pointed Life aims to secure financial stability this year. AD rods, president of the "recent insurance industry is uncertainty increases and IFRS17 situation takes an emergency to ensure financial stability by introducing plans such as in financial markets," he said "The Agricultural Life also recapitalization and management constitution RBC ratio control of an appropriate level through improved Hannah said it would go. "
With respect to correspondence IFRS17 TF also it plans to expand the TF-scale to build a full-scale response system this year. AD rods president said that "in the beginning of the second half year according to the 2021 introduction period after completion of the construction by 2019 year 2020 will be operated as a period of stabilization." Also it said it would select a long term plan to channel △ Product △ △ △ Asset Management Customer Service, etc. Each of constitutional improvement projects across the business to strengthen the financial capacity independently of the system construction companies strive to improve health.
[Q & Clerk rod boss;
- the first year of business goals this year
2017 to achieve the sales target. The insurance company sees that the priority should be to achieve the sales target of the company as a sales basis. It is also expected to try to raise capital and improve management constitution for ensuring financial stability. The goal is to gihae fully prepared to RBC ratio to the appropriate level of management as much as possible the impact on the less IFRS17 introduced. In addition to spearheading aggressive plans to finance consumer protection activities in order to achieve the vision of "customer first love, such as life insurance companies, committed to perform social responsibilities.
- from the banks. How will demonstrate whether the NH Agricultural Life office experience, former General Manager Sales Promotion in all banks
Quaternary industrial revolution arrival can be explained by the Internet of Things (IoT), big data, AI and the like. Being paying a lot of attention and effort to the growth of the financial sector, digital NH NH life was somewhat slower than in banks. Based on the digital banking experience and know-how of the bank to strengthen NH NH vital non-face-to-face channels are gearing up for an online insurance market, signed an ICT association services joint research and development MOU with KT for product development and research and insulator-tech sector to pursue expansion plans.
- Life is a differentiator with the NH NH
We have done that to develop products only jeompomang ensure farmers across the country and reliable partner with the role of rural farmers.
This year is planned to further enhance specific dedicated products and insurance services in rural areas to develop services to farmers through jeongongryeon Japanese and foreign insurance companies benchmarking. With regard to the introduction IFRS17 is also a foot wide of the past under the circumstances, I deduct such other times because coupon savings-type insurance, rather than selling came with emphasis on interest rate-linked negative margin challenges insurers face.
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