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The Big Four insurance companies in South Korea (Samsung, DB, Hyundai, KB) are showing signs of slightly increasing car insurance premiums for online channels (CM) next year.  The Big Four insurance companies in South Korea (Samsung, DB, Hyundai, KB) are showing signs of slightly increasing car insurance premiums for online channels (CM) next year. As the government intervenes in pricing to activate the underperforming insurance comparison services among the three major financial platforms (debt refinancing, savings, and insurance), these companies are developing additional countermeasures. The financial authorities have stated that they will take strict action if insurance companies increase the burden on consumers with high insurance premiums, even though they anticipate additional reductions in commission fees. According to financial authorities and the insurance and fintech industries on October 1, discussions between insurance companies and platforms regarding the ‘Car Insuran...

The Best Practices for Settlement Support Funds, established by the Korea Insurance Agency Association (GA Association) and financial authorities to eradicate unfair practices in the GA industry, The Best Practices for Settlement Support Funds, established by the Korea Insurance Agency Association (GA Association) and financial authorities to eradicate unfair practices in the GA industry, will be officially implemented this month. This guideline aims to strengthen the operating standards for settlement support funds and internal controls to establish fair competition within the GA industry. In this blog, we will explore the key aspects of the Best Practices for Settlement Support Funds, the reasons for their implementation, and their potential impact on the GA industry. 1. Background of the Implementation of Best Practices for Settlement Support Funds The GA industry has been providing excessive settlement support funds to attract insurance agents, which has led to unfair business prac...

The introduction of the Insurance Sales Specialist Company system is imminent, with strengthening the responsibilities of General Agencies (GAs) becoming a key issue.  The introduction of the Insurance Sales Specialist Company system is imminent, with strengthening the responsibilities of General Agencies (GAs) becoming a key issue. Due to the intense competition among GAs for scouting insurance agents and the resulting consumer harm, the Financial Services Commission is reviewing plans to assign GAs responsibilities at the level of financial institutions. In this blog, we will take a closer look at the background of introducing the Insurance Sales Specialist Company system, the current status of GAs, and the future outlook. 1. Background and Necessity of Introducing the Insurance Sales Specialist Company The influence of GAs in the insurance industry has been steadily increasing. Due to their ability to sell products from multiple insurance companies simultaneously, many insurance...

A recent survey conducted by Appity sheds light on the evolving online shopping habits of South Korea’s MZ generation A recent survey conducted by Appity sheds light on the evolving online shopping habits of South Korea’s MZ generation (those born between the 1980s and 2000s). The survey, carried out from August 2 to August 8, 2024, reveals significant insights into how often this demographic shops online, their preferences, and the issues they face. The results highlight the increasing prevalence of online shopping, the rise of international purchases, and the challenges of ensuring consumer protection in this growing market. In the modern era, online shopping has become an integral part of daily life, offering unparalleled convenience. However, recent delays in payment settlements on major social commerce platforms like TMON and WEMAKEPRICE have exposed vulnerabilities in the online shopping ecosystem. As we delve into MZ generation’s shopping behaviors and opinions, the complexity o...

The Insurance Reform Council, led by the Financial Services Commission and the Financial Supervisory Service The Insurance Reform Council, led by the Financial Services Commission and the Financial Supervisory Service, has prioritized restoring consumer trust and is pursuing various measures to reduce incomplete sales. The council aims to enhance consumer protection through industry-wide voluntary agreements. However, there are mixed opinions from both GA (General Agency) and insurance sectors, with expectations and concerns about practical follow-up measures. The Insurance Reform Council, which is set to continue until the end of 2024, has identified 'restoring consumer trust in insurance' as its top priority. To address issues related to scout recruitment of insurance agents and frequent job changes leading to replacement contracts, the Financial Services Commission has proposed several regulatory measures. A notable example is the establishment of 'Guidelines for Settlem...

In the competitive race to be the top General Agency (GA) in the insurance industry In the competitive race to be the top General Agency (GA) in the insurance industry, an alarming trend is emerging—insurance consumers are increasingly being neglected. As insurance agents frequently change jobs or leave the industry, more and more policyholders are left without proper management, resulting in what is known as "orphan contracts." This phenomenon has reached a troubling scale, with over 4 million such contracts being created annually, leaving consumers vulnerable and unprotected. The insurance industry is currently experiencing a significant increase in the number of "orphan contracts," where policyholders are left without an assigned insurance agent due to the agent's departure from the company. According to the Financial Supervisory Service, the retention rate of exclusive insurance agents last year was only 33% for life insurance companies and 52% for non-life ...

The association has noted a rise in misleading information about tax-free insurance products Recently, the Life Insurance Association (LIA) issued a strong warning to insurance YouTubers and bloggers about exaggerated tax-free claims in their advertisements. The association has noted a rise in misleading information about tax-free insurance products, prompting a demand for clear legal grounds. This article will cover the LIA's warning and provide accurate information on tax-free insurance products. Tax-free benefits of insurance products are a significant selling point. However, increasing instances of such benefits being exaggerated or lacking legal backing in advertisements have become a concern. In response, the LIA recently issued guidelines to life insurance companies and general agencies (GAs) about the advertising of tax-free savings insurance products, including short-term whole life insurance, minimum guaranteed variable annuities, savings insurance, and annuity insurance....