The Korean life insurance industry has officially declared five promises to earn more consumer trust.
This marked the first time in the financial sector that top executives have gathered to resolve to boost life insurers’ consumer-centric management.
On May 12, the Korea Life Insurance Association (KLIA) held the “Life Insurance Promise Day” event at the Life Insurance Education and Culture Center in Seoul.
It announced a joint resolution to practice consumer-centric management more actively.
The event was attended by CEOs of 22 Korean life insurance companies, KLIA executives, and officials from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
On this day, the CEOs made five promises through the joint resolution.
They stated that they would shift all decision-making to a consumer-centric standard and would not sell products that consumers do not understand or that pose a risk of disadvantages.
They also pledged to restore trust by establishing sound sales practices, not delay payment of insurance money and ensure that no one is excluded from insurance.
The Korean life insurance industry voluntarily organized the event based on a shared understanding of the importance of consumer protection.
Notably, for the first time in the financial sector, CEOs jointly resolved to make a pledge to consumers, officially formalizing the industry’s commitment to action.
The participants watched a video featuring consumer voices, including concerns that insurance is difficult and complex, anxiety over contract management due to excessive insurance sales competition and a need for prompt insurance payouts.
Accordingly, Korean lifer insurers decided to pursue tangible changes for consumers throughout the entire process from product development and sales to payouts.
“Today’s pledge is not merely a declaration, but will become a standard by which consumers evaluate the life insurance industry in the future,” said Kim Chul-ju, chairman of the KLIA during the event.
“We will make changes that consumers can really notice and implement them responsibly.”
“This is a meaningful occasion where the Korean life insurance industry is voluntarily reaffirming its commitment to consumers for the first time in the financial sector,” said Kim Jin-hong, director general of the Financial Industry Bureau at the FSC.
“I believe this pledge will lead to tangible changes and become a model case that drives trust across the entire Korean financial industry.”
“If the life insurance industry takes this opportunity to move beyond short-term performance-oriented approaches and foster an ecosystem of mutual growth with consumers from a long-term perspective, it will achieve sustainable qualitative growth for the Korean life insurance industry,” said Seo Young-il, deputy governor of the FSS.
On top of that, the KLIA will form a task force to monitor and supplement the implementation of the pledges, ensuring that the Korean life insurance industry’s joint actions are carried out without setbacks.
Through this, it will spread a consumer-centric management culture and build a life insurance industry that everyone trusts.
Meanwhile, the Korean life insurance industry publicly announced its commitments with the declaration, “Insurance is a promise.
Today, we are renewing our promise to consumers,” and stated that they would take full responsibility and fulfill the commitments to the end.
Helping Young People Victimized by Jeonse Fraud
The KLIA’s Life Insurance Social Contribution Committee will the promote economic recovery of young people who have suffered from Jeonse fraud by providing support for student loan repayments.
The initiative aims to alleviate burdens on young people who face economic difficulties early in their careers due to Jeonse fraud.
The committee announced on May 8 that it has signed a memorandum of understanding with the Korea Scholarship Foundation and will provide 100 million won to support the student loan repayment project for young people who fell victim to Jeonse fraud.
The agreement was established to ease economic burdens on young people who are victims of Jeonse fraud, which recently emerged as a serious social issue, and help them make a stable entry into society and recover their daily lives.
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