Eun Seong-su Meets Insurance Company Heads, Calls Financial Consumer Protection Act "An Opportunity for Next-Level Growth"

Financial Services Commission Chairman Holds Meeting with Insurance Industry CEOs

Eun Sung-soo, Chairman of the Financial Services Commission, is giving opening remarks at the CEO meeting of the financial investment industry held at the Korea Financial Investment Association in Yeongdeungpo-gu, Seoul on the 5th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Oh Hyung-gil] Eun Sung-soo, Chairman of the Financial Services Commission, stated, "Although strengthening consumer protection following the enforcement of the Financial Consumer Protection Act may pose a short-term burden on insurance companies, it will ultimately serve as an opportunity for the insurance industry to grow further by securing consumer trust."

At a meeting with insurance company representatives held on the 6th at the Life Insurance Association Education and Culture Center, Chairman Eun said, "Insurance policies are complex, and there are many complaints and insurance fraud cases, so the insurance companies' special efforts and meticulous management are crucial."

He added, "Starting next week, we will operate a task force to monitor the implementation status of the Financial Consumer Protection Act by sector regularly and proactively support the field to ensure there are no difficulties."

He continued, "During the six-month grace period, we will work with the industry to establish guidelines on specific matters requiring detailed instructions to ensure compliance with regulations without difficulties. We plan to form dedicated joint task forces with the financial authorities and the industry in areas such as advertising review, key explanatory documents, and standard internal control standards to prepare these guidelines swiftly and share and disseminate them promptly once finalized," he emphasized.

Furthermore, as the responsibility of insurance companies toward insurance agencies and insurance planners is being strengthened, he urged a comprehensive review of the sales channel management system and requested the sharing of consumer protection-related information and education for sales channels.

Additionally, Chairman Eun stated, "For the smooth implementation of the new International Financial Reporting Standards (IFRS 17) and the new solvency ratio (K-ICS) scheduled for 2023, it is necessary to proactively strengthen capital and manage company-wide aspects such as product design, asset management, and dividends." He added, "This year, we will support capital expansion efforts by announcing a legislative amendment to the Insurance Business Act to establish the basis for issuing 'contingent capital securities.'"

The meeting was attended by heads of the Life and Non-life Insurance Associations and representatives from Samsung Life Insurance, Kyobo Life Insurance, Mirae Asset Life Insurance, LINA Life Insurance, Hanwha General Insurance, Heungkuk Fire & Marine Insurance, Samsung Fire & Marine Insurance, and KB Insurance.

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