As complaints over insurance disputes surged, the Financial Supervisory Service began on-site inspections of insurers' dispute-handling practices, starting with KB Insurance and DB Insurance.
According to the financial authorities on the 10th, the Financial Supervisory Service (FSS) formed a joint "relay-style on-site rapid response team" within the insurance divisions and has been inspecting insurers' dispute-handling status since on the 7th. The FSS plans to sequentially inspect four life insurers and 10 non-life insurers through Oct. 30. The move comes as disputes keep increasing despite improvements to policy terms and claim payment standards and the expansion of dispute mediation staff.
In the first half of this year, 15,436 disputes were filed, up 4,993 (47.8%) from a year earlier. The number processed also rose to 14,062, up 2,832 (25.2%), but it is not keeping pace with the increase in filings.
It appears to be due to tighter claim reviews to prevent insurance payout leakage and the ease of filing disputes using artificial intelligence (AI). The FSS plans to pilot AI-based complaint and dispute-handling services this month, while using the rapid response team to resolve the backlog of disputes.