Financial Services Commission: "Improving Insurance Policy Evaluation System to Meet Consumer Expectations"

[Asia Economy Reporter Oh Hyung-gil] This year, the proportion of general public participation in the insurance policy understanding evaluation will significantly increase. The purpose is to examine complex and difficult insurance policies from the perspective of insurance consumers and identify improvements to make them easier to understand.

On the 25th, the Financial Services Commission resolved the improvement plan for the insurance policy understanding evaluation at the Policy Understanding Evaluation Committee meeting and decided to apply it from the 20th evaluation conducted in the first half of this year.

First, the proportion of general public participation in the insurance policy understanding evaluation will increase from the existing 10% to 30%. The evaluation by committee members will decrease from 90% to 70%.

Also, the evaluation of the general public's understanding, which previously only assessed the main contract policy, will be improved to include special contracts along with the main contract policy.

Among special contracts, items related to insurance payment claims, damages with a high causal relationship to compensation, and non-compensable damages, which frequently generate complaints, will be added to the evaluation.

Additionally, instead of selecting evaluation target products based on new sales volume over one year, the final selection coefficient will be calculated by weighing new contract numbers and complaint numbers at a 7:3 ratio, and the evaluation committee will select the products accordingly.

The intention is to scrutinize policies that generate more complaints than sales volume.

Based on the understanding evaluation results, to ensure insurance companies actually improve their policies, a new evaluation item related to policy understanding will be established in the consumer protection evaluation section of the insurance company management performance assessment (RAAS).

A Financial Services Commission official said, "We have established an institutional device to improve insurance policies more easily and clearly from the perspective of insurance consumers," adding, "It is expected that products with complex or unclear policies that have actually caused inconvenience to consumers will be effectively improved."

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