Financial Supervisory Service Holds Insurance Sector Briefing... "Must Maintain Sound Market Order"

Discussion on Key Business Plans for the Insurance Sector This Year

The Financial Supervisory Service (FSS) announced on the 5th that it held the '2025 Financial Supervisory Work Briefing for the Insurance Sector,' attended by approximately 200 participants including insurance companies, General Agencies (GA), and representatives from the Insurance Association.

In the first session, Jang Gwonyuk, a partner at Boston Consulting Group (BCG), gave a presentation on the topic of 'Key Trends in the Insurance Industry.' This was followed by an explanation of this year's supervisory and inspection directions for the insurance sector and a Q&A session. In the second session, FSS and accounting and actuarial practitioners from insurance companies discussed the 'Advanced Roadmap for Actuarial Supervision.'

Financial Supervisory Service building.

Kim Beomjun, Deputy Director of the FSS, stated in his opening remarks, "This year, we plan to closely manage the risks of insurance companies and strictly crack down on unsound business practices," adding, "We will also do our best to strengthen the role of the insurance industry and prepare for the future."

Deputy Director Kim also said, "The FSS plans to enhance crisis situation analysis to ensure that insurance companies maintain sound capital strength this year," and added, "We will improve risk management systems such as advancing actuarial supervision, refining the Solvency Capital Requirement (K-ICS) system, and reorganizing capital regulations."

He continued, "We ask the insurance industry to analyze risks and take proactive self-help measures as needed in response to interest rate declines and changes in actuarial assumptions," and added, "We will focus our supervisory and inspection capabilities on unsound management practices driven by short-term performance pursuits to restore market order."

Additionally, the FSS plans to focus on reforming the insurance sales commission system and managing operational risks such as sales delegation risks in insurance companies. It also plans to actively support pre-consultations to ensure that the accountability structure serves as a foundation for effective internal control establishment.

Deputy Director Kim stated, "We will faithfully implement improvements to automobile insurance compensation standards, which affect the majority of the public, and reforms to indemnity insurance," and added, "To ensure the sustainable growth of the insurance industry, we will revise regulations related to linked industries and overseas expansion, and also strive to activate infrastructure such as Silson24 and insurance comparison and recommendation platforms."

The FSS plans to actively reflect the opinions and suggestions discussed at this briefing in its future supervisory and inspection work.