Going forward, insurance planners with a history of sanctions will find it difficult to be appointed by General Agency (GA). This decision by the Financial Supervisory Service came after planners who had been sanctioned for past violations moved to different GAs and caused similar problems.
On the 26th, the Financial Supervisory Service announced the results of an investigation into the control of the appointment of planners by insurance companies and GAs, and stated its plans to establish and operate guidelines containing important matters and related procedures for the appointment of planners by insurance companies and GAs.
The reason the FSS initiated the establishment of guidelines is that cases have recently been found where planners with a history of sanctions repeated violations after transferring to other companies. In the recent case of GA PS Fine Service, which was involved in similar reception activities, it was revealed that the representatives and executives of this organization participated in similar reception activities before the establishment of PS Fine Service. After the establishment of PS Fine Service, associated planners engaged in similar reception activities, among which over 50 continued to sell similar reception products even after leaving PS Fine Service. Additionally, some planners continued similar reception activities after transferring to other GAs.
The financial authorities plan to establish and operate guidelines that include important matters and related procedures for the appointment of planners by insurance companies and GAs. The guidelines will include mandatory review items and related procedures for the appointment of planners, focusing on strengthening internal controls in the insurance industry. The financial authorities plan to quickly prepare and operate the guidelines for the appointment procedures of insurance planners in cooperation with the Life and Non-Life Insurance Association and the GA Association by April.
The FSS noted that it will take swift and severe measures against illegal activities of planners, such as similar reception, based on the principle of zero tolerance.