Message From the President | Sustainable Shin Kong | Shin Kong Life Sustainability
Message From the President
Looking back at 2022, the global environment and society were impacted and faced concerns due to various factors such as the resurgence of the COVID-19 pandemic, the outbreak of the Russian-Ukrainian war, escalating inflation, and interest rate hikes by central banks. In addition, challenges such as climate change, digital transformation, aging population, and declining birth rates further tested the adaptability and resilience of businesses worldwide. In the face of such severe challenges, Shin Kong Life Insurance has adopted a positive and proactive approach, viewing crises as opportunities and seizing every chance to excel. Through the operation of our Corporate Sustainability Committee, we have enhanced the sustainability knowledge and capabilities of our directors, senior executives, and employees at all levels. We strive to align with International Financial Reporting Standards 17 (IFRS 17) and Insurance Capital Standard 2.0 (ICS version 2.0), while incorporating climate change into our risk management scope. We continue to develop high-quality and innovative insurance products and digital services for our customers, accelerate talent transformation, and provide employees with a more friendly work environment and excellent benefits. By collaborating with our partners, we further expand our sustainable impact to achieve mutual benefit. In 2023, as Shin Kong Life celebrates its 60th anniversary, we embrace the theme of "Shin Kong 60: Sustainable Innovation" as our annual strategic slogan, in the hopes of integrating the values of "Low Carbon, Innovation, and Mutual Benefit" into our business operations to fulfill every commitment, and meet the expectations of all stakeholders.
Low Carbon and Net Zero , Green Operations
With our parent company, Shin Kong Financial Holdings, joining the Taiwan Alliance for Net Zero Emission in 2021 and setting a net zero carbon reduction target for 2030, SKL has also established goals to achieve net zero carbon emissions for the headquarters by 2026 and for the headquarters and major office locations by 2030. In 2022, we completed the formulation of our net zero plan. On the one hand, efforts are made to reduce operational energy consumption through the development of sustainable green buildings, the replacement with energy-saving equipment, and the promotion of changes in employee behavior. On the other hand, together with our parent company, we are committed to developing a more concrete net zero emission pathway through Science-Based Targets initiatives (SBTi) to reduce carbon emissions from our investment portfolios and support investments in renewable energy and green financing. At the same time, we focus on improving climate change risk management and the quality of related information disclosure. Climate change issues are considered in operational planning, risk management policies, and risk appetite, while climate-related financial disclosures have been conducted in accordance with the TCFD framework, as well as obtained external verification.
Innovative Services and Excellent Experiences
SKL keeps pace with the times by leveraging digital technology to optimize customer experiences and enhance operational efficiency. As the insurance service journey starts with the customer end, we have pioneered the development of the "Policy Appraiser" web page using OCR technology, providing policyholders with the most convenient insurance coverage analysis tool. By introducing the "Light Speed Insurance" service, we have led the trend of zero-contact and paperless insurance application. We have interfaced with the "Claims Consortium Blockchain 2.0" and "Autonomous Personalized Data Application Platform (MyData)" to expedite claims processing and review. Simultaneously, we have upgraded our official LINE account, official app, and website member area to ensure that customers have a seamless and high-quality service experience at every touchpoint. Furthermore, we have incorporated ESG, fair customer treatment and friendly financial services into product design, marketing, and claims appeal services. In 2022, we developed the industry's first ESG trend products, such as "Air Pollution Insurance Policy" and "Food Safety Insurance Policy," to help the public counter air pollution and food safety threats. Also, we have designed products to meet the needs of the elderly, people with disabilities, economically disadvantaged groups, and young people by strengthening KYC, KYP, and protection mechanisms against exploitation of the elderly. Our efforts have received 4 recognitions, including "Excellence Award in the Evaluation of Fair Treatment of Customers", "Micro-insurance Outstanding Performance Award", "Disability Care Award" and "Outstanding Performance Award in Aging Insurance Competition" by FSC. "SKL Hao Shi Guang Insurance Plan" has also won the 19th National Brand Yushan Award for Best Product.
Furthermore, we facilitate talent transformation through digital empowerment. In 2022, we organized an AI digital talent training program to stimulate creative solutions and introduced AI signature recognition to enhance underwriting efficiency and accuracy. We also launched the e-agent project, leveraging big data and mobile commerce apps to assist our insurance agents in customer management and precision marketing. The project has significantly strengthened our digital business capabilities and expansion potential.
Creating a Sustainable and Better Home
To expand SKL's own financial influence, we have distributed climate change questionnaires to investment and financing targets, taken engagement actions, and strengthened risk assessments of carbon-intensive industries. We have implemented responsible investment and fulfilled stewardship, with the amount of ESG-themed investments reaching NT$213.9 billion in 2022. We also extend our influence to the supply chain by requiring cooperation from suppliers to sign commitment statements and adhere to our ESG policies during procurement while conducting supplier risk assessments and on-site audits.
With the belief that "what is taken from the society should be given back to the society", we have contributed to social welfare through three main focuses: "all-round development, health promotion, and environmental sustainability," which align with the United Nations' Sustainable Development Goals (SDGs). We continue to organize various artistic and cultural events to encourage youth development and self-expression. Through collaboration with the Digital Humanitarian Association, we have leveraged our core competencies in the "Remote Health Promotion for Rural Communities" program, providing online health courses and professional medical consultations to elderly individuals in remote areas. We launched the "Happy Dining Table with an Acre of Land" project, signing the "Pledge of Mutual Benefit" with smallholder farmers and donating NT$100 to the Alliance of Taiwan Foodbanks for each food safety policy sold, fulfilling our commitment to public welfare. By highlighting biodiversity and promoting the Reef Check program, we have cultivated professional divers and marine educators, and contributed to the preservation of marine ecology. We have also actively encouraged employees to participate in volunteer activities, supporting community well-being and bringing light to every corner.
With Light, Every Expectation is Realized
The 60th anniversary is a new milestone for SKL. Looking ahead to the next decade and facing the ever-changing external environment, we will fear no difficulties and continue to listen to the voices of stakeholders. With a forward-looking vision and firm determination, we will promote sustainable management and expand the value of sustainable finance. We strive to become a benchmark enterprise for sustainable business and a trusted financial partner of the public. Together with all sectors, we safeguard a sustainable home and work towards a better future.