GA Industry Takes a Bold Step Towards Introducing Specialized Sales Companies

The Korea Insurance Agency Association (KIAA) is taking significant steps to introduce specialized sales companies within the GA (General Agency) industry

The Korea Insurance Agency Association (KIAA) is taking significant steps to introduce specialized sales companies within the GA (General Agency) industry, a long-held goal. The association is preparing relevant legislation and plans to promote this initiative through a global symposium. This article examines the potential impact and importance of introducing specialized sales companies to the GA industry.

The GA industry is on the cusp of a transformative change. The Korea Insurance Agency Association is leading the charge to introduce specialized sales companies—a long-desired objective of the GA sector. The concept of specialized sales companies involves GAs transitioning from merely facilitating insurance contracts to becoming financial firms that handle contract execution. If this system is implemented, GAs will evolve from simple intermediaries to more independent and specialized financial entities.

Recently, the GA industry has been actively discussing the introduction of specialized sales companies with the association, focusing on the challenges and steps needed to make this vision a reality. The KIAA plans to collaborate with Rep. Kang Myung-gu of the People Power Party to draft a bill centered on the establishment of specialized sales companies. Additionally, a global symposium is scheduled for November to promote the importance and necessity of this initiative. The association has allocated a budget of approximately 310 million KRW for this endeavor, which will be used for legal consultation, promotional activities, and symposium organization.

The GA industry views this initiative as a paradigm shift that goes beyond mere regulatory reform. The transformation from a sales channel dependent on insurance companies to an independent, specialized structure will require significant changes, including regulatory adjustments to align with the standards of a specialized sales company. For instance, the current system, where insurance agents are registered through insurance companies, might be restructured to allow each GA to manage its own registrations. Additionally, the scope of work for these specialized companies could expand to include insurance contract management, claim processing, contract termination, and other delegated tasks.

KIAA President Kim Yong-tae has expressed confidence that the introduction of specialized sales companies will not only benefit the GA industry but also significantly contribute to the broader Korean economy. Under his leadership, there is strong optimism that this long-awaited reform will come to fruition, ushering in a new era for the GA industry.

The introduction of specialized sales companies represents a significant milestone for the GA industry. With the strong leadership of the Korea Insurance Agency Association and the collaborative efforts of the GA sector, this initiative is poised to bring about transformative changes. As we look ahead, the industry will need continued support and attention to ensure that these changes bring positive outcomes. The future of the GA industry is just beginning to unfold.