Simplification of 232 Report Types: 179 Abolished, 53 Submission Cycles Relaxed
Announcement of Average Public Interest Rate for Insurance Products Moved Up by One Month
[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) will improve the practice of data submission and advance the announcement timing of the average public interest rate for insurance products to alleviate the workload of financial companies.
On the 6th, the FSS announced 'FSS, the F.A.S.T. Project #07' containing these details.
First, to reduce the burden of data submission for financial companies, the work reports will be significantly simplified. The FSS selected 232 types of reports with low utilization over the past year through a full survey of work reports and consultations with financial companies, and decided to simplify them. Among these, 179 types will be abolished, and the submission frequency of 53 types will be relaxed. Along with this, reflecting the opinions of financial companies, the FSS will also promote improvements such as guidance on report preparation instructions and enhancement of convenience through computer system upgrades. To this end, the FSS plans to start revising the implementation rules by financial sector within the year.
The practice of data requests will also be improved. For the convenience of financial companies, data requests after 6 p.m. will be blocked by the system, and in unavoidable cases, approval from the head of the general department within the sector will be required. Informal data requests via phone or email outside the financial company data submission request system (CPC) will be prohibited. The FSS plans to provide guidance and training to its employees on precautions such as checking for duplicate requests when making data requests. Additionally, the FSS will actively accept suggestions from financial companies regarding system usability issues and plans to establish an additional system that can provide immediate responses to inquiries related to data submission. The FSS will implement feasible measures immediately.
The announcement timing of the average public interest rate will be advanced from the end of October to the end of September each year to allow insurance companies to secure preparation time for product development. Although the FSS provides the average public interest rate used in insurance product development to insurance companies annually, the timing of provision at the end of October has been criticized for insufficient preparation time for insurance companies to reflect the average public interest rate in the development of products for the next business year.
In addition, major institutional improvements such as standard terms and conditions will be implemented collectively at specific times such as the end of the year after sufficiently collecting opinions from insurance companies. However, exceptions will be made in cases of special circumstances such as concerns about consumer damage.
An FSS official said, "We will improve working methods to substantially reduce the workload of financial companies arising from supervisory tasks so that financial companies can perform their duties efficiently," adding, "We will strive to significantly reduce excessive workloads from the perspective of financial companies."
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