South Korea’s financial authorities are preparing to announce a significant reform plan aimed at enhancing transparency in the insurance industry. The proposed reforms will include a detailed disclosure of insurance sales commission calculations and an extension of commission payment periods from the current two years to as long as seven years.
To facilitate the development of the reform plan, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) will establish a dedicated task force. This task force will be responsible for fine-tuning the proposal, with plans for an additional briefing later this month to finalize the details, according to reports from Chosun Biz.
A briefing on the reform plan was held recently, attended by over 180 employees from approximately 70 insurance companies, general insurance agents (GAs), insurance planners, as well as representatives from both life and non-life insurance sectors and GA associations.
One of the key elements of the reform is to foster greater transparency in the insurance market. Under the new guidelines, insurance companies will be required to disclose commission rates for products, categorized by sales channel and product group, in line with international standards.
The FSC and FSS initially outlined the broad direction of the reform plan in December 2024. A revised version of the plan is expected to be unveiled in May, following another industry briefing scheduled for later this month.
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