Financial Supervisory Service Conducts Planned Investigation on Insurance Fraud... Including Golf Insurance and Shared Vehicles

Analysis Based on 92,538 Detected Individuals as of Late 2019... Investigation Personnel to Be Intensively Deployed

[Asia Economy Reporter Wondara] The Financial Supervisory Service (FSS) will conduct a targeted investigation into insurance fraud. The scope of this investigation includes cataracts, alveolar bone (the bone supporting teeth), injury treatment special contracts, golf insurance, and shared vehicles.

According to financial authorities on the 15th, the Insurance Fraud Response Team will carry out the targeted investigation based on the analysis results of vulnerable insurance products and sectors to fraud conducted last year. The FSS identified vulnerable products and sectors by analyzing the ratio of insurance payouts received by fraudsters (92,538 detected as of the end of 2019) over the past three years compared to total accident insurance payouts last year, categorized by product, disease, and coverage.

The investigation results showed that among products, insurance fraud using driver insurance was the highest at 6.0%, followed by fire insurance (3.9%), term insurance (3.8%), travel insurance (3.3%), and whole life insurance (3.0%). Among diseases, self-harm and burns accounted for the highest proportion at 8.0%, followed by transportation-related injuries, drug intoxication and suffocation, outpatient injuries and death. Coverages with high fraud rates included disability (12.1%), nursing and care (5.4%), fixed hospitalization benefits (4.9%), death (3.1%), and emergency treatment (2.7%). The coverage with the largest amount of fraud was indemnity treatment (147.7 billion KRW), followed by hospitalization (128.5 billion KRW), diagnosis (124.0 billion KRW), and disability (108.8 billion KRW).

In cases of insurance fraud involving shared vehicles, methods such as renting a car without face or real-name verification and deliberately colliding with other vehicles were found. Regarding golf insurance, it is still known that many cases involve faking hole-in-ones to claim congratulatory money.

An FSS official stated, "We have shared these results with insurance companies and will focus investigative personnel on insurance products and sectors vulnerable to fraud in the future."