Kim Yongtae, Chairman of the Insurance GA Association: "We Will Help Customers Receive Their Insurance Payouts Properly"

Insurance GA Association Holds New Year's Press Conference on January 20
Kim Yongtae, Chairman of the Insurance GA Association: "Supporting the Implementation of the Revised Insurance Sales Commission System"
"Full-Scale Legislation for Insurance Sales Specialist Companies"

The Insurance GA Association has set its top goal for this year as "Receiving Insurance Payouts Properly and On Time" in order to strengthen consumer protection. The association also plans to support the industry-wide implementation of the revised insurance sales commission system.

On January 20, Kim Yongtae, Chairman of the Insurance GA Association, held a New Year's press conference at the headquarters in Jongno-gu, Seoul, stating, "As the insurance industry is being reorganized around consumer protection, the GA sector will also elevate its sales responsibility and internal control systems to a higher level."

Kim Yongtae, Chairman of the Insurance GA Association, is holding a New Year's press conference at the headquarters located in Jongno-gu, Seoul on the 20th, explaining the key plans for this year. Photo by Choi Donghyun

Chairman Kim identified key environmental changes in the GA industry, including the strengthening of consumer protection, the stabilization of the revised sales commission system, and the enhancement of accountability and internal controls in sales channels. He emphasized the need to establish operational standards before the introduction of the "1200% Rule," as well as to build processes for the effective implementation of institutional changes, such as improving the insurance product comparison and explanation system and establishing a commission installment system.

For this year, Chairman Kim presented five core initiatives: ▲ Establishing a collaborative system that prioritizes consumer protection ▲ Strengthening GA training functions ▲ Building IT management and security systems ▲ Introducing the insurance sales specialist company system ▲ Expanding policy cooperation and external networks.

Regarding consumer protection, the association plans to promote the timely and proper receipt of insurance payouts. To this end, the Insurance GA Association will actively work on raising awareness of insurance claim eligibility, calculating the total amount of insurance payouts available, guiding customers through all necessary claim procedures, and, upon request, assisting customers throughout the entire process. Chairman Kim explained, "The greatest benefit for insurance consumers is to receive their payouts properly and on time. If we help customers receive their insurance payouts correctly, it will increase trust in GAs and ultimately benefit their management as well."

Recently, financial authorities finalized the revised insurance sales commission plan. According to the main points, starting from January 2027, insurance sales commissions will be paid in installments over four years for two years. From January 2029, commissions will be paid in installments over seven years. The purpose of this change is to encourage agents to manage insurance contracts for a longer period by distributing the commission, which was previously paid in full at the start of the contract, over an extended period. The "1200% Rule," which previously applied only to agents affiliated with insurance companies, will be extended to agents affiliated with GAs starting July 1. In addition, a system for comparing and disclosing sales commissions will be introduced to enhance consumers' right to know.

Chairman Kim stated that the association intends to help ensure the smooth implementation of the revised commission system. However, he expressed concerns that additional support is needed to manage contract retention rates. He explained, "By law, insurance companies are responsible for maintaining insurance contracts and collect retention fees through premiums. Since the revised plan also imposes a duty of effort for contract retention on GA agents, appropriate compensation is necessary."

Regarding the timing of the implementation of the 1200% Rule, Chairman Kim noted that more preparation time is needed. He said, "Each insurance company offers different products, and the commission structures vary widely. Before the system is implemented, GAs and insurers need to align their protocols and develop IT systems and training, but the remaining six months are simply not enough."

The association also plans to actively pursue the introduction of insurance sales specialist companies, which has been the GA industry's long-standing wish. Chairman Kim stated, "Now that the commission reform and third-party risk management guidelines have been finalized, we will actively engage in legislative discussions on the insurance sales specialist company system. We will also continue to work with authorities to implement measures to prevent security incidents in the GA industry."