Will the Increase Rate of Actual Loss Insurance Premiums Be Finalized Within the Year?… Go Seung-beom "Announcement Soon"

Financial Services Commission Chairman Ko Seung-beom is delivering opening remarks at the Financial Services Commission Chairman and Insurance Industry Meeting held at Lotte Hotel in Jung-gu, Seoul on the 3rd. On this day, Chairman Ko Seung-beom meets with insurance company CEOs and experts from related organizations to discuss the development direction of the insurance industry and key issues. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jin-ho Kim] It is expected that the decision on next year's increase rate for indemnity insurance premiums will be finalized within this year. As negotiations between the financial authorities and the insurance industry reach the final stage, it is analyzed that both sides have narrowed their differences to some extent to minimize consumer confusion.

On the 30th, Ko Seung-beom, Chairman of the Financial Services Commission, visited the press room at the Government Seoul Office Complex and said, "We are currently in the final stages of discussions, comprehensively considering sustainability and consumer protection aspects," adding, "We will announce the decision imminently (either today or tomorrow)."

Regarding the increase rate for indemnity insurance premiums, the financial authorities and the insurance industry have been at an impasse. The insurance industry demanded a significant increase of over 20%, citing large-scale losses in indemnity insurance, while the financial authorities have maintained that such an increase rate is excessive.

If the decision on the indemnity insurance premium increase rate is made today or tomorrow as Chairman Ko mentioned, the increase will be applied starting January next year. However, if the decision is delayed beyond January, the premium increase may be postponed to February.

Chairman Ko emphasized the importance of managing household debt, citing the possibility that the United States may quickly normalize its monetary policy next year. He said, "When the U.S. raises interest rates, the impact on emerging countries is very significant," and added, "We will pay special attention and respond with measures prepared for the case when the U.S. raises rates sharply."

In particular, Chairman Ko stressed regarding household debt, "The relationship among financial stability, financial development, and economic growth is more important than anything else," and emphasized, "My conviction remains unchanged that excessive debt should not undermine financial stability."

Meanwhile, Chairman Ko stated that negotiations on next year's target growth rate for household debt in banks will be concluded soon. He said, "We are taking the position of organizing this while considering the different conditions of banks and internet banks."

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