Insurance GA Association Launches Self-Inspection on Voluntary Agreement Compliance at Large GAs

"Proactive Self-Regulation to Address Excessive Competition
Over Settlement Support Payments
Before Implementation of the 1,200% Rule in July"

The Korea Insurance General Agency Association (Insurance GA Association) announced on the 17th that it will conduct a comprehensive self-inspection of "compliance with the voluntary agreement and self-check of settlement support payments" targeting large GAs (General Agencies) with more than 1,000 affiliated planners.

Kim Yongtae, Chairman of the Insurance GA Association, is explaining the key promotion plans for this year at a New Year's press conference held at the headquarters located in Jongno-gu, Seoul on the 20th. Photo by Choi Donghyun

The inspection will cover 49 out of the 58 GA companies that have participated in the voluntary agreement.

This is a proactive self-regulation measure to address excessive competition regarding settlement support payments within the industry, ahead of the implementation of the "1,200% rule" for GA planners in July. The 1,200% rule is a system that limits the first-year commission paid to planners to within 12 times the monthly insurance premium.

The main inspection items include: ▲current status of settlement support payments ▲compliance with the voluntary agreement ▲criteria for calculating and recovering settlement support payments ▲status of related internal controls, among others.

For companies that have not participated in the voluntary agreement, the Financial Supervisory Service will conduct the same inspection directly.

Kim Yongtae, Chairman of the Insurance GA Association, stated, "We will continue to make unwavering efforts for institutional stability and consumer protection through ongoing consultations with supervisory authorities."

The association plans to report the results of this self-inspection to the Operations Committee and the Financial Supervisory Service, and will strive to prevent excessive scouting and excessive competition ahead of the sales commission reform.

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