Impact of New Insurance Regulation: Reduced Subsidiary Delegation but Increased Fees for Life Insurers
This year, a change in the Insurance Business Act led to a significant reduction in the delegation of claims adjustment tasks to subsidiaries by major life insurers This year, a change in the Insurance Business Act led to a significant reduction in the delegation of claims adjustment tasks to subsidiaries by major life insurers, even as the total amount of fees paid to these subsidiaries increased. The new regulation aims to curb "self-claims adjustment" practices, but the issue of fee concentration remains persistent. This article explores the current state of subsidiary delegation in the insurance industry, the background of the regulatory changes, and their impact. In 2024, the proportion of claims adjustment work delegated to subsidiaries by major life insurance companies has significantly decreased. This change is largely attributed to the recent implementation of measures to prevent "self-claims adjustment." According to the insurance industry, three major lif...