Korean general insurance industry is facing a lot of opportunities and challenges because of deregulation, technology innovation, and globalization. Significant change is underway in the Korean financial sector due to opening up the market to foreign players and other domestic financial services players, changing customer needs and technology shocks. Today's threatening, rapidly changing environment requires insurance companies, especially small-medium size insurance companies to reevaluate their business strategies to survive in a competitive turmoil. To continue to be a insurance service provider in Korean insurance and financial services market, small-medium size players have to build a comprehensive view of likely future competitive landscape, and based on this understanding, a define a set of several strategic priority initiatives and execute against those.
For this purpose, this paper first looks at the current trend of Korean domestic general insurance industry, then analyzes problems and opportunities of insurers and finally proposes a set of several strategic priority initiatives for small-medium size insurers to success in the future. Internally, some of the key competition factors are channel efficiency, price and product competition, customer management, and service efficiency. Developing and implementing strategies to survive and prosper for small-medium size insurers will take significant effort, it is clear that outsourcing or partnering with other insures( including life insurers) and other financial institutions will be a critical element for success.