The Financial Supervisory Service decided to conduct a comprehensive inspection of insurance companies and corporate insurance agencies (GA). The inspection targets will be determined considering pre-and post-risk factor indicators. If serious violations are detected during the comprehensive inspection, measures will be taken in strict accordance with the zero-tolerance principle, including penalties and reporting to investigative authorities, and cooperating with relevant agencies such as the National Tax Service.
On the 5th, the FSS held a '2025 Financial Supervisory Work Briefing for the Insurance Institutional Sector' attended by over 200 participants, including officials from insurance companies, corporate insurance agencies (GA), and the Insurance Association.
The key inspection matters concern whether the GA management and evaluation systems, procedures to prevent incomplete sales, and internal controls of insurance companies were adequate. The FSS plans to conduct intensive checks on GAs that have low internal control operation evaluation grades and poor improvement results.
The FSS also plans to examine whether there are any unhealthy business practices, such as improperly rejecting or reducing insurance payouts or inducing agreements, as well as whether the internal organization's practical oversight functions and performance evaluation systems are operating appropriately. It will closely monitor insurance companies with weak financial soundness and check the possibility of soundness deterioration due to excessive competition over guaranteed limits or refund rates.
The FSS decided to organize special inspections jointly among inspection departments in response to serious and urgent issues, fully responding to actions that cause consumer harm. Deputy Governor Kim Beom-jun noted during his opening remarks, "This year, we will closely manage the risks of insurance companies and rigorously address unhealthy business practices."
Meanwhile, the FSS announced that it will advance the 'Actuarial Supervision Modernization Roadmap' to refine the insurance liability evaluation standards and introduce the actuarial review process for the new accounting standard (IFRS17). It also plans to make significant improvements to insurance systems without any setbacks, including reforms for actual loss insurance and enhancing the standards for long-term treatment costs for automobile insurance.
Deputy Governor Kim stated, "We will improve risk management systems, including actuarial supervision modernization, refining the solvency (KIX) ratio system, and restructuring capital regulations," and urged the insurance industry to analyze risks in preparation for falling interest rates and changes in actuarial assumptions, and to take proactive self-corrective measures as needed.
He continued, "We will ensure the improvement of compensation criteria for automobile insurance and implement reforms for actual loss insurance without any setbacks," adding, "We will promote the provision of consumer-friendly products and services through a product supervision system." He also mentioned, "We will strive to support new product launches and revitalize infrastructure for services like actual loss 24 and online platform insurance comparisons and recommendations."