Financial Authorities Discuss 10 Major Strategies at the 2nd Insurance Reform Meeting

On the 8th, the Financial Services Commission and the Financial Supervisory Service held the 2nd Insurance Reform Meeting, which included participation from the Financial Consumer Studies Association, academia, related organizations, research institutes, insurance companies, and the Insurance Association.

At the meeting, Kim So-young, Vice Chairman of the Financial Services Commission, announced that they would promote consumer-oriented tasks such as reducing insurance complaints as the first step of the Insurance Reform Meeting. She also stated that the Insurance Reform Meeting will be held monthly going forward to implement 10 major strategies and over 60 reform tasks.

The 10 major strategies are ▲improving the practice of product development focused on short-term profits ▲blocking unnecessary non-reimbursable expenses in indemnity insurance and supporting the strengthening of essential medical functions ▲preventing concerns over flexible accounting profits through guidelines on unclear actuarial assumptions ▲establishing capital accumulation regulations (K-ICS) proportional to the sale of high-risk products ▲prompt payment of legitimate insurance claims to consumers and seeking supervisory measures to address causes of frequent insurance complaints ▲strengthening responsibility for incomplete sales and establishing internal controls to foster a consumer-first sales culture ▲enhancing responsibility and internal control regulations for corporate insurance agencies (GA) regarding incomplete sales ▲expanding the role of insurance companies to provide total services throughout the life cycle ▲supporting the restructuring of the insurance industry in response to demographic, structural, and climate changes ▲reviewing the activation of the insurance liability trading market (run-off market) to prepare for interest rate declines and enable continuous risk management by insurance companies.

The financial authorities plan to operate the Insurance Reform Meeting monthly until the end of the year to discuss more than 60 tasks. They also plan to announce follow-up meetings on new international accounting standards (IFRS17), indemnity insurance, and sales channel improvement tasks, which have recently attracted significant public interest, as soon as consultations are completed.