Korea Re, South Korea’s only domestic specialty reinsurer, has partnered with artificial intelligence (AI) and cloud company MegazoneCloud to accelerate the AI transformation (AX) of its reinsurance business.
The two companies signed a strategic memorandum of understanding (MOU) on July 22, agreeing to combine their expertise in generating artificial intelligence, big data and cloud technologies to drive operational innovation and productivity improvements in the reinsurance industry.
They will work together to discover and advance new business prospects to promote mutual growth and maximize market competitiveness.
Through this agreement, the two companies will enter into a long-term “technology partner” partnership that extends beyond one-off system implementation projects.
Their future plans include collaborating on several key initiatives:
- Improving reinsurance contracting and underwriting processes using generative AI and data solutions
- Build a risk prediction system powered by big data analytics
- Expand enterprise-wide business automation in cloud-native environments, including integrating artificial intelligence-driven robotic process automation (AI RPA)
- Develop new financial business models through globally connected infrastructure
Under the partnership, MegazoneCloud will support operational innovation by integrating artificial intelligence into Korean Re’s entire reinsurance workflow.
The application of AI will not be limited to infrastructure management, but will be embedded directly into key insurance functions such as rate setting and underwriting.
This approach aims to optimize Korea Re’s return on investment (ROI) while generating specific benefits such as cost reductions and productivity improvements.
Jae Moon Lee, chief information officer of Korea Re, said: “As reinsurance needs to analyze large amounts of data to assess various risks and support complex decision-making, the ability to leverage artificial intelligence will be a key factor in determining future competitiveness.
“Through our long-term collaboration with MegazoneCloud, we will continue to expand our artificial intelligence services to bring tangible benefits to our employees’ daily work and further enhance our digital competitiveness in the global reinsurance market.”
In addition to delivering the AI system, MegazoneCloud will support change management, including corporate governance and user training, to help Korean Re achieve organization-wide transformation and establish an AX-ready corporate culture.
Korean Re sees artificial intelligence as a key driver of its future competitiveness in the reinsurance market. In order to promote innovation, it established an “Artificial Intelligence Innovation Working Group” last year to work closely with Megazone Cloud.
Their first project, the financial industry’s first “artificial intelligence assistant for commercial insurance rate calculations,” was designated an innovative financial service by the Financial Services Commission’s regulatory sandbox program in March this year.
In addition, Korean Re is working with MegazoneCloud to build a secure AI infrastructure and implement an “in-house generated AI network” to meet strict regulatory security and network separation requirements.
Seong Bae Kong, chief information officer at MegazoneCloud, said: “AX in the reinsurance space requires the use of multiple agents to handle complex variables simultaneously, so complex orchestration is critical.
“Building on our successful experience delivering demanding AX projects for major commercial banks and securities firms, MegazoneCloud will act as an ‘AI Orchestrator’, going beyond infrastructure implementation and responsible for integrated control of multiple AI models and secure financial networks, as well as organization-wide change management.”
