"Insurance Is a Promise"... Life Insurance Industry Pledges "Consumer-Centric Management"

All Life Insurance CEOs Gather to Make Joint Resolution:
"Five Promises to Consumers"

The life insurance industry has pledged to shift the entire process—from sales to claims payments—to a consumer-centric approach in order to restore consumer trust.

On May 12, the Life Insurance Association held the 'Life Insurance Promise Day' event at the Life Insurance Education and Culture Center in Gwanghwamun, Seoul, announcing 'Five Promises to Consumers.' The event was attended by CEOs of 22 life insurance companies, association executives, and officials from the Financial Services Commission and the Financial Supervisory Service.

The CEOs of the life insurance companies made a joint resolution, pledging five key commitments: shifting all decision-making to a consumer-oriented approach; prohibiting the sale of products that are difficult for consumers to understand or may pose disadvantages; establishing sound sales practices; preventing delays in insurance claims payments; and minimizing the exclusion of vulnerable groups from insurance coverage.

During the event, a video was released highlighting consumers' complaints and demands, including the complexity of insurance products, anxiety about contract management due to excessive competition, and the need for prompt insurance claims payments. Accordingly, the life insurance industry plans to implement improvements that consumers can directly experience throughout the entire process, from product development and sales to post-sale management, including claims payments.

Kim Cheol-joo, Chairman of the Life Insurance Association, stated, "Today's promise is not just a declaration but will become the standard by which consumers evaluate the life insurance industry going forward. We will create changes that consumers can truly feel and fulfill our responsibilities with accountability."

Kim Jin-hong, Director General of the Financial Industry Bureau at the Financial Services Commission, commented, "This is a meaningful occasion where, for the first time in the financial sector, the life insurance industry has voluntarily pledged its commitment to consumers. We hope it will serve as a model case for enhancing trust across the entire financial industry."

Seo Young-il, Deputy Governor of the Financial Supervisory Service, also emphasized, "If we create an ecosystem that goes beyond short-term performance and enables co-prosperity with consumers, the industry will be able to achieve sustainable qualitative growth."

Going forward, the Life Insurance Association plans to operate a dedicated task force to monitor and supplement the implementation of these promises and to spread a culture of consumer-centric management.