FSS Issues Warning on Exaggerated Advertising of COVID-19 Vaccine Insurance

Concerns Over Personal Data Misuse Through Partner Companies

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] The Financial Supervisory Service (FSS) has issued a consumer advisory regarding insurance policies covering anaphylactic shock, a side effect of the COVID-19 vaccine. This is due to concerns that these insurance products may involve exaggerated advertising that differs from actual coverage and that customer personal information is being collected through inducement to subscribe.

On the 3rd, the FSS provided guidance titled "Consumer Precautions Regarding Anaphylactic Shock Insurance." Anaphylactic shock is a severe allergic reaction that progresses rapidly due to external stimuli, and in cases with underlying conditions, it can cause organ damage due to hypotension.

As social interest in the COVID-19 vaccine has increased, insurance products covering anaphylactic shock as a vaccine side effect have been launched one after another. According to the FSS, as of the 16th of last month, 13 insurance companies are selling such products, with over 200,000 contracts concluded.

However, the FSS points out that during this process, insurance companies and affiliated firms have engaged in overheated sales competition, raising concerns about exaggerated advertising and misuse of personal information, thus urging consumers to exercise special caution.

First, COVID-19 vaccine insurance is being advertised as if it covers all side effects from vaccination. The FSS emphasizes that, contrary to the advertising of vaccine insurance, coverage does not include muscle pain, headaches, blood clots, and other such conditions, and this must be clearly communicated.

Additionally, there is concern that these insurance products are being sold as small-amount, short-term, or free insurance, being used by insurance companies or affiliated firms as marketing tools to attract new customers. It is pointed out that consumers may be exposed to unexpected advertisements or marketing.

Furthermore, the FSS urges attention to the fact that public anxiety about vaccine side effects is being stirred up and that there is a lack of detailed explanation regarding coverage contents.

The FSS plans to strengthen supervision of insurance product advertisements to prevent incomplete sales caused by exaggerated advertising and excessive marketing exploiting consumer anxiety. Through the Life and Non-Life Insurance Associations, advertising reviews will be tightened to prohibit expressions related to COVID-19 vaccine insurance that may cause consumer misunderstandings. They also plan to ensure that consumers who have joined group insurance through affiliated firms are informed of the important details of the insurance products.

This content was produced with the assistance of AI translation services.