Financial Supervisory Service: "Receiving Expensive Gifts When Signing Up for Insurance Is Illegal"

Recently, as competition among insurance planners to attract customers has intensified, cases of inducing insurance subscriptions through premium payments on behalf of customers or providing gifts have frequently occurred.

In response, financial authorities plan to actively address rebate provisions identified through consumer reports via targeted inspections and impose the maximum level of sanctions permitted by law on violators. A financial authority official stated, "We will hold institutions strictly accountable for tolerating illegal special benefits or neglecting internal controls," emphasizing penalties at the institutional level rather than just on individuals.

On the 22nd, the Financial Supervisory Service announced key violations and sanction cases to establish order in GA (General Agency) sales, outlining cases of prohibited special benefit provisions and future plans.

'Provision of special benefits' refers to acts of providing or promising to provide certain money or goods to the policyholder or insured in connection with the conclusion or solicitation of an insurance contract. Under the current Insurance Business Act, providing money or goods exceeding a certain amount, paying premiums on behalf of others, or unjustified premium discounts are regarded as special benefit provisions and are strictly prohibited as illegal acts.

For example, cases detected include planners paying large premiums on behalf of high-income professionals when concluding high-value pension insurance contracts, and providing gifts worth more than 30,000 won during the sale of children's insurance to customers met through baby fairs or parenting-related internet cafes.

According to the Financial Supervisory Service, from 2020 to 2023, violations of the prohibition on providing special benefits resulted in GA facing registration cancellations and business suspensions (30 to 180 days), affiliated executives receiving dismissal recommendations or work suspensions, and planners being subject to registration cancellations, business suspensions (30 to 180 days), and criminal referrals.