KB Life Care is expanding its nursing business as the life insurance industry faces challenges. The company recently announced the opening of its fifth nursing facility, KB Golden Life Care Gangdong Village, which can accommodate 144 residents. The facility features an open structure with natural lighting, a space for family visits, and a state-of-the-art Internet of Things (IoT) system for real-time safety monitoring. Physical therapy rooms and nurse rooms are conveniently located to enhance care services.
The expansion into senior care comes as life insurers face uncertainty due to changing consumer preferences. Younger generations are showing less interest in traditional life insurance, opting instead for investment products. This shift is reflected in KB Life’s Q1 earnings, which saw a 20% year-on-year decline in net profit to 80 billion won.
The trend of life insurers diversifying into senior care is becoming more prevalent as South Korea’s population ages. Other major life insurers, such as Shinhan Life, are also exploring new business models. Shinhan Life’s Innovation Product Team recently visited Japan’s Meiji Yasuda Life Insurance to study Tontin Insurance, a product that pays out more to policyholders who live longer.
As the life insurance industry adapts to these changes, companies like KB Life are focusing on growth areas such as senior care to offset declining traditional business. The success of these new ventures will be crucial in determining the future trajectory of life insurers in a rapidly evolving market.
