Jeong Eun-bo "Non-life Insurers to Seek Harmony and Balance Between Preventive and Post-Supervisory Oversight"

"Strengthening Insurers' Role in Product Management... Preventing Unsound Sales Practices"
"Big Tech Insurance Regulation to Apply Same Rules as Insurers"
"Supporting New Businesses... Expanding Scope of Concurrent and Ancillary Services Including Prepaid Electronic Payment Services"

Jeong Eun-bo, Governor of the Financial Supervisory Service

[Asia Economy Reporter Kwangho Lee] On the 16th, Jeong Eun-bo, Governor of the Financial Supervisory Service, stated, "For insurance companies where system risk is a concern, we will conduct proactive inspections to prevent potential risks, and for companies with low risk levels, we will ensure that their corrective capabilities through internal audits are fully utilized."

On the same day, Governor Jeong held a meeting with CEOs of non-life insurance companies at the Millennium Hilton Seoul Hotel and said, "Regarding the direction of supervision and inspection of non-life insurance, we will follow laws and principles while striving for harmony and balance between preventive supervision and post-supervision."

The meeting was attended by Hong Won-hak, President of Samsung Fire & Marine Insurance; Cho Yong-il, CEO of Hyundai Marine & Fire Insurance; Kim Ki-hwan, CEO of KB Insurance; Kim Yong-beom, CEO of Meritz Fire & Marine Insurance; Kwon Jung-won, CEO of Heungkuk Fire & Marine Insurance; Lee Myung-jae, CEO of Lotte Insurance; Choi Chang-soo, CEO of NongHyup Property & Casualty Insurance; and Yoo Kwang-yeol, CEO of Seoul Guarantee Insurance.

Regarding consumer protection, Governor Jeong emphasized, "We will focus on preventing consumer damage throughout the entire process, including product development, insurance solicitation, and insurance claim payments. We will strengthen the role of insurance companies' internal product committees to block the development of products that cause incomplete sales and improve consumer protection vulnerabilities at the insurance solicitation stage to prevent unsound business practices."

He continued, "In response to big tech companies entering the insurance industry, we will establish a regulatory framework under the principle of 'same function, same regulation' concerning restrictions on sales methods, products, and prohibited acts."

Furthermore, he said, "We will strengthen the social safety net function of insurance through improvements in the indemnity medical insurance and automobile insurance systems. We will revise the insurance payment standards for non-reimbursed excessive medical items such as cataract surgery and manual therapy to enhance the sustainability of indemnity medical insurance, and we will steadily implement the comprehensive improvement plan for automobile insurance (announced last September) to prevent excessive treatment of minor patients and alleviate the insurance premium burden on the public."

Governor Jeong also expressed his intention to actively support the non-life insurance industry in securing new growth engines. He explained, "To support innovative growth such as insurance companies entering new businesses, we will broadly allow ownership of healthcare subsidiaries and expand the scope of concurrent and ancillary businesses necessary for providing platform-based comprehensive lifestyle financial services, including prepaid electronic payment services."

He added, "We will encourage the introduction of advanced insurance products through linkage with new technologies such as autonomous vehicles and the Internet of Things (IoT) to enable proactive risk management."

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