FSS Conducts First Regular Inspection Since Strengthening Consumer Protection... Spotlight on 'Samsung Fire & Marine Insurance'

Regular Insurance Sector Inspection Begins on March 31, with Samsung Fire & Marine Insurance as the First Target
First Inspection Since Overhaul to Consumer-Centered Supervision System
FSS: "Not Targeting Any Specific Company"

The leading company in South Korea’s non-life insurance industry, Samsung Fire & Marine Insurance, has become the first target of this year’s regular insurance sector inspection by the Financial Supervisory Service (FSS), drawing attention from the industry. This marks the first regular inspection since the FSS reorganized its supervision and inspection system to focus on consumer protection, making it a key test case for assessing the intensity of the authorities’ inspections.

Samsung Fire & Marine Insurance Headquarters.

According to the insurance industry on March 27, the FSS will launch its regular inspection of the insurance sector starting with Samsung Fire & Marine Insurance on March 31. Following preliminary inspections conducted earlier this month, the main (on-site) inspection is scheduled to run for about one month starting next week. The main inspection will focus more intensively on areas requiring additional review, based on materials submitted during the preliminary phase. This year, the authorities plan to assign about 30 personnel to the on-site inspection, which is an increase of approximately 10 from previous years. In particular, as the FSS has designated this year as the "first year of financial consumer protection," the current inspection will prioritize examining consumer protection systems and accountability structures.

At a press briefing held the previous day, Park Jisun, Deputy Governor in charge of insurance at the FSS, also announced plans to closely examine whether feedback mechanisms among supervision, inspection, product development, and dispute resolution are functioning properly.

This inspection is attracting significant attention from the industry, as it is the first since the overhaul to a consumer-centered supervision system. With Samsung Fire & Marine Insurance selected as the first target, the industry is rife with various interpretations regarding the selection background, inspection intensity, and the scale of personnel involved, raising a sense of tension. Some speculate that the inspection team could number up to 60, while others suggest that Samsung Fire & Marine Insurance, as the industry’s top company, is being made an "example."

In response, an FSS official stated, "There are various speculations circulating in the industry, but some are exaggerated or have been distorted. This inspection is not targeting any specific company, but is being conducted as part of the regular process and schedule." The official also explained that, given the limited pool of personnel and the structured system, deploying an excessive number of inspectors is not realistically feasible.

According to Samsung Fire & Marine Insurance, the preliminary inspection was conducted mainly through materials submitted by the company, with a comprehensive review covering insurance claim payments, the subscription and contract process (including non-face-to-face channels), overall internal operations, and accounting-related matters. The company also reported that no significant issues were discovered during the preliminary inspection.

Samsung Fire & Marine Insurance further emphasized that this inspection is not a response to any particular issue. As the industry leader, the company explained that the inspection will serve as an opportunity to confirm that its internal controls and consumer protection systems are functioning properly.

A representative from Samsung Fire & Marine Insurance stated, "The regular inspection was originally scheduled for the second half of last year, but was postponed as a themed inspection of another non-life insurer took precedence due to other issues. However, this inspection includes additional consumer protection items and a stronger on-site review."

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