All MG Non-Life Insurance contracts and assets to be transferred to Yebyeol Non-Life Insurance
Business operations of MG Non-Life Insurance suspended from September 4
Policyholders to receive uninterrupted service and protection under Yebyeol Non-Life Insurance
The Financial Services Commission announced on September 3 that it held a regular meeting and resolved to approve the transfer of contracts and the suspension of business operations for MG Non-Life Insurance.
This decision by the Financial Services Commission is a follow-up measure to the partial suspension of MG Non-Life Insurance's business operations and subsequent plans announced on May 14. Prior to this resolution, stakeholders such as the Korea Deposit Insurance Corporation and the MG Non-Life Insurance labor union reached an amicable agreement.
According to this resolution, all insurance contracts and almost all assets of MG Non-Life Insurance will be transferred to Yebyeol Non-Life Insurance. Policyholders will continue to receive coverage under the same terms and conditions, with no changes to their contracts. Liabilities not related to insurance contracts, such as subordinated bonds, are excluded from the transfer. Real estate and other property rights will be transferred through separate asset transfer agreements between MG Non-Life Insurance and Yebyeol Non-Life Insurance.
Effective September 4, all business operations of MG Non-Life Insurance will be suspended. MG Non-Life Insurance will only be allowed to carry out tasks necessary for the contract transfer and liquidation process.
All tasks related to MG Non-Life Insurance policies, including insurance claim payments, will be seamlessly and normally handled by Yebyeol Non-Life Insurance from September 4, when it begins operations. Yebyeol Non-Life Insurance has hired some of the existing employees of MG Non-Life Insurance and will provide stable insurance services using the same office and IT infrastructure. Existing outsourcing contracts with loss adjusters, medical consulting firms, and on-site dispatch companies will be renewed as they are, ensuring that loss adjustment and on-site dispatch services continue without interruption.
A notice under the name of the CEO will be sent to policyholders, informing them in detail about the contract transfer from MG Non-Life Insurance to Yebyeol Non-Life Insurance, as well as the procedures for premium payment and insurance claim filing. Inquiries from policyholders will be handled primarily through the call center and regional customer service centers.
Yebyeol Non-Life Insurance will promptly select an accounting advisory firm to conduct a detailed due diligence of its assets and liabilities. Based on the results of this due diligence, preparations will be made for the transfer of contracts for five companies, including an analysis of IT system migration. In parallel with the contract transfer preparations, Yebyeol Non-Life Insurance will confirm the intention of potential acquirers to take over the company within a set period. If a suitable acquirer is found, sale negotiations will proceed; if not, the contract transfer process to the five companies will be expedited.
An official from the Financial Services Commission stated, "We will ensure that policyholders experience no inconvenience in using insurance services and will make every effort to protect policyholders."
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