The Life and General Insurance Association of Korea said on the 11th it revised the "standard consent to provide information" so retrocession contracts, which allow insurers to disperse risk and contribute to stable claims payments, can be revitalized.
A retrocession contract is an agreement in which a reinsurer transfers part or all of the risk of insurance it has assumed from the ceding insurer to another insurer (a retrocessionaire) to manage the risk stably. For this, separate consent from policyholders to provide information for retrocession contracts is required, but reinsurers have found it difficult to obtain consent to provide information directly from policyholders, so retrocession has not been revitalized.
In response, the Financial Services Commission and the Financial Supervisory Service allowed ceding insurers to obtain, on behalf of policyholders, consent to provide information for retrocession, and based on this, the life and non-life associations revised the "standard consent to provide information." Under the revised "standard consent to provide information," ceding insurers may obtain, on behalf of policyholders, consent to provide information for retrocession.
The purpose of use by recipients under the standard consent is limited only to "(re)insurance subscription." Reinsurers may use policyholder information solely for retrocession purposes such as underwriting review, and use of the information for other purposes, including marketing and promotion, is strictly prohibited.
If the retrocessionaire is an overseas reinsurer, information may be transferred abroad under the (re)insurance contract. In this case, policyholders will be able to directly check overseas reinsurers that may receive their information under the standard consent and the countries where they are located. The revised standard consent will be reflected sequentially in the first quarter of this year after changes to each insurer's IT systems.