Financial Services Commission Imposes Fine on Samsung Life for Violating Insurance Business Act
Disciplinary Scope Significantly Reduced Compared to Financial Supervisory Service
[Asia Economy Reporter Sim Nayoung] The Financial Services Commission has decided to impose a fine of 155 million KRW on Samsung Life Insurance for not paying cancer hospitalization insurance benefits. This disciplinary measure is significantly reduced compared to the decision made by the Financial Supervisory Service's Sanctions Committee at the end of 2020. The 'institutional warning' measure has been maintained.
On the 26th, the Financial Services Commission reviewed the results of the comprehensive inspection of Samsung Life Insurance at its 2nd regular meeting and judged that the non-payment of cancer hospitalization insurance benefits violated the Insurance Business Act, deciding to impose a fine.
However, regarding the Financial Supervisory Service's criticism that Samsung SDS was unfairly supported by not claiming compensation for delayed contract performance, the disciplinary level was lowered to a 'corrective order.' This was because it was judged difficult to consider this as a violation of the Insurance Business Act.
In December 2020, the Financial Supervisory Service decided on a heavy disciplinary measure of 'institutional warning' against Samsung Life Insurance and forwarded a sanction plan including fines and penalties to the Financial Services Commission. At that time, the Financial Supervisory Service imposed fines and penalties on Samsung Life Insurance and took measures such as a three-month salary reduction and reprimands for executives and employees.
The Financial Services Commission plans to notify Samsung Life Insurance of the fine and corrective order. The Financial Supervisory Service will also implement the institutional warning sanctions delegated to the Financial Supervisory Service Commissioner and sanctions against executives and employees.
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