"If You Report Insurance Fraud, You Can Receive a Reward of Up to 2 Billion KRW"

[Asia Economy Reporter Changhwan Lee] Financial authorities and insurance companies will increase the maximum reward for reporting insurance fraud from the current 1 billion KRW to 2 billion KRW starting next year.

According to the Financial Supervisory Service (FSS) and the insurance industry on the 14th, the total number of insurance fraud reports received through the FSS and various insurance company reporting centers in the first half of this year was 2,559, a 6.9% increase compared to the same period last year.

Among these, 126 important reports were received through the FSS, marking a 24.8% increase compared to the same period last year due to the operation of a special insurance fraud reporting period.

The total insurance fraud rewards paid by the Life Insurance Association, the General Insurance Association, and insurance companies in the first half of this year amounted to 800 million KRW.

By type of report, most were related to accident content manipulation, including drunk or unlicensed driving (74.3%) and fabrication or exaggeration of automobile-related accident details (14.6%), accounting for 91.1% of cases.

The industry plans to raise the maximum insurance fraud reporting reward limit from the current 1 billion KRW to 2 billion KRW starting next year, simplify the detection amount brackets, and increase rewards for each bracket.

An FSS official stated, "Active reporting by the public is crucial to detect insurance fraud, which is carried out secretly," adding, "The identity of reporters is strictly protected, and rewards are given to outstanding informants, so we encourage active reporting."

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