"Thorough Preparation for New Systems Including IFRS17"... Financial Supervisory Service Holds Internal Control Workshop for Insurers

41 Life and Non-Life Insurance Companies' Audit Officers, Over 80 Attendees

The Financial Supervisory Service (FSS) discussed key issues with over 80 insurance company audit officers and other practitioners. Topics included capital adequacy and insurance sales precautions related to the newly introduced accounting standards.

On the 28th, the FSS held the "2023 First Half Internal Control Workshop" for insurance companies at its headquarters in Yeouido, Yeongdeungpo-gu, Seoul. Approximately 80 audit department heads and practitioners from 41 life and non-life insurance companies attended the event.

The FSS shared recent major inspection findings to raise awareness of the importance of internal controls within insurance companies. It also discussed key industry issues such as capital adequacy concerns and insurance sales precautions arising from the introduction of new standards like IFRS17. Additionally, the workshop shared actual best practice cases related to the application of ESG (Environmental, Social, and Governance) in insurance companies, including governance and asset management.

Specifically, regarding capital adequacy, the FSS emphasized that with the implementation of the new solvency regime (K-ICS) starting this year, insurance companies should consider that the closing process may take significantly longer compared to the existing system (RBC). It urged companies to pre-assess the procedures and time required for capital increases and to establish a monitoring system reflecting these factors to enable proactive risk management.

Furthermore, the workshop disseminated various practical cases on ESG topics applicable to insurance companies, such as governance, disclosure, risk measurement, asset management, and bond issuance, including definitions and procedures.

In addition, the FSS shared major findings and sanction cases discovered during recent inspections to raise awareness of regulatory compliance among insurance companies and encouraged them to identify and prevent internal control vulnerabilities independently.

An FSS official stated, "We will continue to closely communicate with the insurance industry through various channels such as internal control workshops and actively support insurance companies in enhancing their internal control levels and establishing internal control systems that reflect the latest trends."

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