Samsung Fire & Marine CEO-Direct Consumer Protection Division with 'Strong Authority' (Comprehensive)

Full Enforcement of the Financial Consumer Protection Act: From Consumer Protection System Improvements to Dispute Management
Entrusted with the Authority to Request Data Submission and Conduct Field Surveys

[Asia Economy Reporter Oh Hyung-gil] Samsung Fire & Marine Insurance is operating an organization directly under the Chief Executive Officer (CEO) that oversees consumer protection. This organization is responsible for overall management tasks including education and system improvements related to consumer protection, as well as monitoring product development and sales, and handling complaints and dispute resolution outcomes.

With the Financial Consumer Protection Act (FCPA) coming into full effect on the 25th, this move is interpreted as an effort to establish an internal control system and actively incorporate consumer protection principles into management strategies. Since the FCPA’s grace period has ended, other insurance companies are also expected to establish or revise their own guidelines.

According to Samsung Fire & Marine Insurance’s internal control standards for consumer protection, which took effect on the 25th, a consumer protection oversight body will be established and operated directly under the CEO to independently carry out internal control tasks related to consumer protection.

The oversight body’s main duties include establishing management directions concerning consumer protection and planning and operating related education. It will also monitor consumer protection aspects throughout the entire process of insurance product development, sales, and post-management. Additionally, it will manage the status and resolution results of complaints and disputes raised by consumers.

In particular, the organization has been granted strong authority. It can request system improvements from relevant departments to prevent consumer issues or complaints. Departments receiving such requests must promptly carry out the improvements, and if unable to do so, must explain the reasons through a committee process.

If violations of consumer protection internal regulations are discovered, or if there is concern about significant consumer harm or complaint handling, the organization can request submission of materials, summon employees, conduct on-site investigations, and if necessary, request audits from the audit team.

It can also directly take actions such as consumer protection education for employees and requests for document submission, or ask related departments for cooperation, which must be provided unless there are exceptional circumstances.

The first Compliance Committee meeting after Lee Jae-yong, Vice Chairman of Samsung Electronics, was released took place privately on the 17th at the Samsung Life Insurance building in Seocho-gu, Seoul. The Samsung Life Insurance building on that day. Photo by Moon Honam munonam@

Departments responsible for product development or sales must consult with the consumer protection oversight body in advance regarding product development or changes, sales suspension, and the creation or modification of important documents such as product brochures, terms and conditions, and subscription application forms. If consumer protection issues are identified, the oversight body can request the relevant department to halt product launches, suspend marketing, or submit improvement plans.

Samsung Fire & Marine Insurance plans for the CEO to directly conduct regular inspections at least once a year to ensure that this internal control system for consumer protection is maintained and properly operated.

The evaluation and reward system for sales employees and related departments has also been improved. In addition to sales performance, customer satisfaction and internal control items are now reflected. This includes the number of incomplete sales, customer profitability, consumer satisfaction survey results, completeness of contract-related documents, and the appropriateness of sales procedures. Measures have also been put in place to prevent the sales performance of specific products from being reflected in performance evaluation indicators.

An insurance industry official said, "With the full enforcement of the FCPA, insurance companies are establishing internal standards for consumer protection," adding, "Since the financial sector has historically had the highest number of consumer complaints, this is interpreted as a strong commitment to thoroughly comply with the FCPA."

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