The Financial Supervisory Service (FSS) announced on the 5th that it will intensify its supervision and inspection of unsound business practices by insurance companies, including unfair denial, reduction, or inducement of settlements for insurance claims. Kim Beom-jun, Deputy Governor of the FSS, emphasized the FSS's commitment to managing insurers' risks and eradicating unsound business practices during the '2025 Insurance Sector Financial Supervisory Briefing Session.'

Key Supervisory Directions:

Strengthening GA Management and Internal Controls: Intensive examination of insurers' GA management and evaluation systems, incomplete sales prevention procedures, and the adequacy of GA internal controls.
Moving away from the existing 'compartmentalized' approach of individually inspecting insurers and GAs, and instead comprehensively analyzing the root causes of rule violations.
Close Monitoring of Financial Soundness: Enhanced close monitoring of financially vulnerable insurers to prevent market disruptions.
Inspecting capital expansion plans through management meetings when necessary and demanding self-rescue measures.
Improving Risk Management Systems: Improving risk management systems, including advancing actuarial supervision, refining the K-ICS system, and reorganizing capital regulations.
Strengthening insurers' ability to analyze crisis situations to maintain sound capital adequacy.
Improving Insurance Systems: Improving the product structure of indemnity insurance to strengthen universal healthcare and support for seriously ill patients.
Promoting the expansion of enrollment and coverage ages for indemnity insurance for the elderly and those with medical conditions.
Rationalizing compensation standards for personal and property insurance claims in automobile insurance to improve high-cost repair practices.

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