Kim Yongtae, GA Association Chairman: "Legislative Bill for Insurance Sales Specialist Companies to Be Submitted to National Assembly This Year"

GA Association and Damage Assessment Society Sign Business Agreement to Enhance Consumer Rights

"Breaking the Monopoly of Insurers on Product Manufacturing, Sales, and Claims Payments"

Kim Yongtae, Chairman of the Korea Insurance Agency Association (Insurance GA Association), has pledged that a legislative bill to introduce insurance sales specialist companies will be submitted to the National Assembly within this year. He argues that there is a need to realize the "separation of product manufacturing and sales," which would break the current system where insurance companies effectively monopolize both product sales and claims payments. He also emphasizes the importance of establishing a structure in which agencies independent from insurers are granted the authority to sell products, and loss adjusters can expand their assessment activities regarding insurance claim payments.

"Separation of Product Manufacturing and Sales by Insurers Must Be Realized"

At the 'GA Association-Korea Damage Assessment Society Business Agreement Ceremony for Enhancing Consumer Rights' held on the 8th at the Talent Development Center of the Korea Insurance Agency Association (Insurance GA Association) in Gwanghwamun, Jongno-gu, Seoul, Kim Yongtae, Chairman of the GA Association, and Min Byungjin, Chairman of the Korea Damage Assessment Society, are seen commemorating the event from left to right. GA Association

Chairman Kim made these remarks on May 8 at the "GA Association-Korea Damage Assessment Society Business Agreement Ceremony for Enhancing Consumer Rights," held at the GA Talent Development Center in Gwanghwamun, Jongno-gu, Seoul.

Chairman Kim categorized loss adjusters, who are currently responsible for insurance claim assessments, as follows: those employed by insurers (employed loss adjusters), those commissioned by insurers (commissioned loss adjusters), and those independent from insurers (independent loss adjusters). He explained, "Among these, independent loss adjusters are inevitably the most objective in conducting assessments."

He also stressed that the process of filing insurance claims should be handled primarily by agencies rather than insurers. He diagnosed that, under the current structure where insurers are responsible for both product sales and claims payments, insurers are inevitably reluctant to pay claims.

Chairman Kim intends to promote the separation of product manufacturing and sales through a "legislator-initiated bill" to establish insurance sales specialist companies. This system has been reviewed several times since 2008, and the GA Association is currently making strong efforts to institutionalize it.

Chairman Kim stated, "It is true that, by its very nature, the agency business is structurally positioned so that it can only profit by standing on the side of the consumer, rather than the insurer," and added, "I believe the relevant legislative bill will be submitted to the National Assembly within this year."

"Building a Cooperative System for the Entire Process from Product Sales, Maintenance, to Claims"

Professor Sungkyung Ryu, Honorary Professor at Dongseo University, is giving a keynote presentation on the status of insurance sales specialist company systems in Japan, the United States, and the United Kingdom at the "GA Association-Korea Society of Loss Adjusters Business Agreement Ceremony for Consumer Rights Enhancement" held on the 8th at the GA Talent Development Center in Gwanghwamun, Jongno-gu, Seoul. Photo by Chae-seok Moon

At the agreement ceremony, the two organizations agreed to establish a consumer-centric cooperative system across the entire process of insurance sales, maintenance, and claims, and to actively cooperate in five key areas.

The five key areas are: establishing support services for insurance claims; building a regional linkage system for loss adjusters and revitalizing the consumer selection rights system; providing advisory services for insurance claim disputes; jointly promoting services to help consumers recover unpaid insurance claims; and developing standardized training manuals for GA planners and consumer consultations.

Chairman Kim said, "This agreement is significant in that it has established an organic foundation for cooperation across all areas of insurance sales and claims," and added, "We will work to ensure that consumers can enjoy insurance benefits more fairly and transparently."

Min Byungjin, Chairman of the Korea Damage Assessment Society, stated, "This agreement marks the starting point for protecting insurance consumers and restoring trust in the insurance industry," and added, "By combining the expertise of the two organizations, we will enhance the reliability and fairness of the insurance claims process and take practical steps to strengthen the protection of consumer rights."

"Consumer Selection Rights for Loss Adjusters Must Be Introduced"

Tae Soon Jung, Vice Chairman of the Korea Damage Assessment Association, is presenting on the expected effects after the introduction of consumer selection rights at the "GA Association-Korea Damage Assessment Association Business Agreement Ceremony for the Promotion of Consumer Rights," held on the 8th at the GA Talent Development Center in Gwanghwamun, Jongno-gu, Seoul. Photo by Chae Seok Moon

At the agreement ceremony, keynote presentations were also held on the topic of conflicts of interest resulting from the integrated system of product manufacturing, sales, and claims payments by insurers, as well as on measures to strengthen consumer protection through the introduction of consumer selection rights.

Sungkyung Ryu, Honorary Professor at Dongseo University, emphasized the necessity of the insurance sales specialist company system, stating, "It is essential to establish a cooperative model for the separation of product manufacturing and sales that combines the sales expertise of GAs with the claims expertise of loss adjusters."

Tae Soon Jung, Vice Chairman of the Korea Damage Assessment Society, pointed out the difficulties employed and commissioned loss adjusters face in performing independent work apart from insurers, and suggested the introduction of "consumer selection rights." This system allows consumers to directly select their loss adjuster.

Vice Chairman Jung noted, "There may be concerns about unqualified individuals being involved (when independent loss adjusters are engaged)," but emphasized, "If the loss adjuster is registered with the Financial Supervisory Service, there should be no issue in performing objective loss adjustment work without needing the insurer's approval."

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