Kwangsoo Kim, Chairman of the Korea Federation of Banks, "Bancassurance Regulations Must Be Improved Quickly"

Kwangsoo Kim, Chairman of the Korea Federation of Banks

Kim Kwang-soo, Chairman of the Korea Federation of Banks, emphasized on the 7th that "a reasonable regulatory improvement plan must be promptly established" regarding the bancassurance system (selling insurance through banks).

Chairman Kim stated at the '20th Anniversary Seminar of Bancassurance' held at the Bankers' Hall in the afternoon, "Korea's bancassurance system faces many restrictions that limit consumer benefits due to various regulations such as restrictions on products sold, sales ratios, and recruitment methods."

He continued, "Whole life insurance and automobile insurance are restricted from being handled, and bancassurance customers are deprived of the right to choose insurance products and opportunities to reduce subscription costs," adding, "Such product sales restrictions are regulations rarely found in major foreign countries that have introduced bancassurance."

Regarding the restriction that the sales ratio of products from one insurance company is limited to within 25%, he explained, "This regulation has been continuously pointed out as a problem that limits market competition and infringes on financial consumers' right to choose products," and "Due to the sales ratio regulation, banks must prioritize the sales ratio of products by insurance companies over customer needs, resulting in disadvantages for consumers."

Chairman Kim also addressed the online insurance platform system, stating, "Electronic financial operators are allowed, but banks currently cannot compare or recommend insurance products online and are excluded from business operators," adding, "It is expected that bancassurance customers will face the problem of not being able to receive insurance comparison and recommendation services through their transaction bank's app." He emphasized the need to improve regulations that restrict customer convenience, such as limits on sales personnel and handling tasks.

Furthermore, he urged regulatory improvements, saying, "Bancassurance is a mutually beneficial system where banks sell insurance through their credibility and extensive branch networks, insurance companies reduce business expenses, consumers enjoy insurance premium reductions, and banks gain non-interest income."

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