[비즈니스포스트] The Financial Supervisory Service has urged insurance companies to refrain from unhealthy business practices such as excessive competition.
On the 20th, the Financial Supervisory Service held a ‘meeting on current issues in the insurance industry’ with executives from 15 major insurance companies at the Center Point Building in Gwanghwamun and shared important current issues in the insurance industry in 2024 and the Service Financial Supervision. address for supervision.
▲ On the 20th, the Financial Supervisory Service held an ‘Insurance Industry Current Affairs Meeting’ with executives of 15 major insurance companies at the Center Point Building in Gwanghwamun to discuss important current issues in the insurance industry in 2024 and share the direction of the Supervisory Service Financial. for supervision.
At the meeting on this day, there were officials from related organizations, including the Senior Vice President of the Financial Supervision Service, the Director of the Insurance Supervision Bureau, the Director of the Insurance Risk Management Bureau, the Sangmyung Insurance Association, and the Non-life Insurance Association , is present.
In the industry, there are eight life insurance companies including Samsung Life Insurance, Kyobo Life Insurance, Hanwha Life Insurance, Shinhan Life Insurance, NH Nonghyup Life Insurance, Mirae Asset Life Insurance, KB Life Insurance, and Heungkuk Life Insurance, as well as Samsung Fire and Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, KB Insurance, and Meritz Executives from seven non-life insurance companies attended, including fire insurance, NH Nonghyup Non-Life Insurance, and Hanwha Non-Life Insurance.
The Financial Supervisory Service urged insurance company executives to carefully examine product design and performance compensation structures to ensure there are no incentive structures that encourage short-term performance and unhealthy sales channels.
In particular, as concerns about unhealthy recruitment increased due to scouting competition for planners and recruitment practices focused on high commissions, the insurance company and corporate insurance agency (CA) industry was asked to refrain from excessive competition.
They also emphasized strengthening internal controls on unreasonable product development and sales, such as excessively planning specific coverage limits or emphasizing only high reimbursement rates even though it is insurance coverage.
It was also mentioned that insurance companies must have thorough risk management and the ability to absorb losses as they have many investment assets that are highly affected by uncertain economic conditions, such as long-term bonds and real estate investments.
The Financial Supervisory Service said, “The insurance industry is now in dire need of innovation to find new growth engines in the face of various factors such as a rapidly changing financial environment, internal and external uncertainty, and stagnant growth,” adding, “Supervision authorities also exercise supervisory authority to tackle unhealthy business practices and cut-throat competition in the short term.” “We will make the most of it and respond actively to ensure that the financial system is not damaged,” he said. Reporter Park Hye-rin
#Financial #Supervision #Service #Insurance #Company #Executive #Meeting #Excessive #competition #excessive #coverage #limit #design #avoided
