The Changing Landscape of the General Agency (GA) Market Amid Regulatory Tightening
As financial authorities strengthen internal control standards for General Agencies (GAs), As financial authorities strengthen internal control standards for General Agencies (GAs), the GA industry is likely to engage in mergers and acquisitions (M&As) to expand their scale. Particularly, smaller GAs may find it challenging to meet the new regulatory standards, putting their survival at risk. This blog will explore the changes in the GA industry and the direction of policies set by financial authorities. Acceleration of Structural Reorganization in the GA Market Recently, financial authorities have been tightening their control over GAs, which is expected to accelerate the structural reorganization of the GA industry. The Financial Supervisory Service (FSS) is establishing an operational risk regulation system for indirect management of GAs and plans to implement direct regulations in the future. This is expected to encourage GAs to pursue economies of scale through M&As. ...