Seungbeom Go: "The Decision on the Increase Rate of Indemnity Insurance Premiums May Be Postponed to Next Year"

"Currently in Final Negotiation"

Financial Services Commission Chairman Ko Seung-beom is speaking at the 'Meeting for the Activation of Financial Platform Innovation' held on the 15th at Front1 in Mapo-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jin-ho Kim] Ko Seung-beom, Chairman of the Financial Services Commission, stated on the 29th regarding the increase rate of indemnity insurance premiums, "It has not been decided yet and is currently under final negotiation."

Chairman Ko made these remarks on the same day after a business agreement ceremony to strengthen credit recovery support for guaranteed loans to support the revival of small business owners and the general public, held at the Korea Press Center in Jung-gu, Seoul, during a meeting with reporters.

Chairman Ko explained, "Negotiations are ongoing, and since there is not much time left this year, it is not confirmed whether it will be done within this year or early next year. It will be done soon," adding, "We will announce it as soon as it is finalized."

Regarding the increase rate of indemnity insurance premiums, the financial authorities and the insurance industry remain at an impasse. The insurance industry has demanded a significant increase rate of over 20% citing large-scale losses in indemnity insurance, while the financial authorities consider the increase rate excessive.

Earlier, on the 21st, Jeong Eun-bo, Governor of the Financial Supervisory Service, expressed his intention to intervene in the determination of the indemnity insurance premium increase rate during an online year-end press briefing.

Governor Jeong said, "Premium rates should be determined rationally, and the judgment of rationality is made by insurance companies and policy authorities according to market conditions," adding, "Especially in the case of indemnity insurance, which has 39 million subscribers and is closely connected to the daily lives of the public, the supervisory authorities need to ensure rationality."

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