FSS Launches Focused Reporting Period for Illegal Advertisements
GA Industry Steps Up Voluntary Inspections and Corrections
All Large GAs Submit Pledge Letters to Comply With Advertising Regulations
Over 12,000 Non-Compliant Advertisements Deleted or Corrected
Reporting of Illegal Online Ads Accepted Until May 16
On-Site Inspections Planned for Serious or Widespread Violations
The Financial Supervisory Service (FSS) announced on April 27 that it will operate a "focused reporting period for illegal advertisements" in order to raise the level of internal controls related to advertising across the corporate insurance agency (GA) industry.
The FSS has been making various efforts together with the Korea Life Insurance Association, the General Insurance Association of Korea, and the Korea Insurance GA Association to foster a sound advertising environment in the GA industry. Last month, the FSS conducted campaigns for "participation in the pledge to comply with advertising review regulations" and "voluntary inspection and correction of GA advertisements."
In the campaign for participation in the pledge to comply with advertising review regulations, 18 GAs newly submitted pledge letters to the life and general insurance associations. As a result, all 74 large GAs (with 500 or more agents), which were the target of the campaign, submitted their pledge letters. Among medium-sized GAs, 66% of all companies submitted their pledge letters.
In the campaign for voluntary inspection and correction of GA advertisements, 26 GAs participated and deleted or corrected 12,503 advertisements that violated regulations. By type, "expiration of review validity period, omission, or incorrect entry" accounted for the largest share at 68.1% (8,520 cases). "Unreviewed advertisements" accounted for 19.1% (2,389 cases).
The FSS plans to operate a focused reporting period for remaining illegal advertisements still present online, even after the voluntary inspection and correction period. From April 28 to May 16, GAs and others can submit reports (including supporting evidence) on illegal online advertisements to the Korea Insurance GA Association. Detailed information on how to report can be found on the "Insurance Agency Advertisement Monitoring Center" section of the Korea Insurance GA Association website.
An FSS official stated, "The Korea Life Insurance Association and the General Insurance Association of Korea will directly inspect illegal advertisements that still remain online due to non-participation in the campaign," adding, "For cases where significant or large-scale violations are confirmed as a result of the inspection, the FSS will conduct on-site inspections."
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