Chairman Kim Yong-tae Unveils Vision and Strategy for Establishing 'Insurance Sales Specialist Company'

Kim Yong-tae, the chairman of the Korea Insurance GA Association, recently shared his vision and strategy for the introduction of Insurance Sales Specialist Companies in an interview. 

Kim Yong-tae, the chairman of the Korea Insurance GA Association, recently shared his vision and strategy for the introduction of Insurance Sales Specialist Companies in an interview. He emphasized enhancing consumer trust and protecting the rights of insurance agents as key to strengthening the position of GAs within the financial industry. This blog post delves into the key points of Chairman Kim's interview, discussing the necessity of Insurance Sales Specialist Companies, industry expectations and concerns, and the plans for future implementation.

In June, Kim Yong-tae marked his first anniversary as the chairman of the Korea Insurance GA Association. Coinciding with this milestone, the GA self-regulation agreement aimed at preventing excessive scout fees will also celebrate its first anniversary in September. Over the past year, Chairman Kim has worked tirelessly to elevate the status of the GA industry, focusing on curbing the overheated competition in recruiting insurance agents through the institutionalization of self-regulation agreements. Reflecting on the past year, he described it as "as intense as a scorching summer," underscoring the efforts made to tackle the side effects of excessive scout competition within the GA industry.

One of the major initiatives that Chairman Kim is driving is the introduction of Insurance Sales Specialist Companies, which is considered a crucial goal for the GA industry. To facilitate this, he is proposing amendments to the Insurance Business Act and engaging in activities with the National Assembly, including seminars and public hearings to garner support for the legislation. Chairman Kim emphasized that this new system offers an opportunity for GAs to gain institutional recognition for their diverse roles and highlighted the significant benefits it would bring to consumers.

The core aim of Insurance Sales Specialist Companies is to clearly delineate the manufacturing and sales functions of insurance companies, thus providing more specialized services to consumers. Citing Japan as an example, Chairman Kim noted that Japan successfully implemented a similar system eight years ago, which has been operating without issues. He stressed that Insurance Sales Specialist Companies would help define accountability clearly from the consumer's perspective and streamline contract management and compensation services.

Chairman Kim also addressed the concerns of small and medium-sized GAs about the introduction of Insurance Sales Specialist Companies. He pointed out that Japan faced similar concerns when it introduced its system for large specialized insurance agents but that smaller GAs managed to leverage their unique strengths to maintain competitiveness. He urged the GA industry to collaborate and seize the growth opportunities presented by the establishment of Insurance Sales Specialist Companies.

Chairman Kim Yong-tae's vision aims to redefine the insurance industry's landscape. The establishment of Insurance Sales Specialist Companies is a crucial step in enhancing the GA sector's stature and providing consumers with more reliable services. Under the leadership of the Korea Insurance GA Association and Chairman Kim, we look forward to the successful implementation of Insurance Sales Specialist Companies, benefiting both the GA industry and consumers alike. Continuous efforts and collaboration are essential for the successful introduction of this new system.