The insurance industry is likely to see a rise in voluntary retirements in the latter half of this year, driven by ongoing digital transformation and a wave of mergers and acquisitions, according to industry sources on Monday, reported The Korea Times.
As companies restructure their workforces during integration processes, the focus is shifting toward incentivised voluntary departures rather than forced layoffs.
Hanwha General Insurance, currently preparing to complete its merger with Carrot General Insurance by September, is expected to follow this trend.
Older employees at Hanwha may be encouraged to retire voluntarily, as Carrot's workforce is significantly younger.
Industry observers estimate that workforce reductions during mergers typically impact about 20% of employees. With labor costs remaining largely inflexible, insurers see restructuring as a necessary step to boost operational efficiency.
Voluntary retirement schemes are also likely at Tongyang Life Insurance and ABL Life Insurance, as Woori Financial Group prepares to finalise its acquisition of both firms on 1 July.