Introduction of IFRS17, responsibility structure, etc.
Insurance Industry Regulation Outlook in 2025
“CEO responsibility will be strengthened”
“/> news/cms/202411/25/news-p.v1.20241125.551433cbb0d34dfaac704364f94bea35_R.jpg" data-width="2835" data-height="2011" /> Enlarge photo Myeong-soo Lee, CEO of Yoon & Yang, giving a welcoming speech.
Yoon & Yang Law Firm announced on the 25th that it held the ‘1st Insurance Seminar’ on the 22nd to discuss in detail how the insurance industry should respond to changes in the legal environment and regulations, including the introduction of a responsibility structure. Recently, at the regular insurance reform meeting hosted by the financial authorities, various system improvements, such as the establishment of new systems such as IFRS17 and K-ICS, and the introduction of responsibility structure and computerized system for actual loss insurance claims, were discussed one after another, leading to major changes in all areas of the insurance industry by 2025. Because it is expected.
About 100 people from the legal, compliance, and audit departments of domestic insurance companies such as Samsung Life Insurance, Kyobo Life Insurance, and Hyundai Marine & Fire Insurance and insurance-related organizations participated in this seminar, which was jointly held online and offline.
Presentations for each session, which lasted 3 and a half hours, were made by Yoo Chang-hoon Han (2nd year of law school), a lawyer at Yoon & Yang who served as the head of the insurance system team at the Insurance Supervisory Service of the Financial Supervisory Service and the head of the legal team at the Legal Affairs Office, and Soo-kyung Lee, a former secretary at the Korea Communications Commission who recently received the Prime Minister’s Award for Contribution to Personal Information Protection. (Training Institute 36th class), Attorney Joo Min-seok (1st Law School class), a former Financial Services Commission official, and Attorney Jeon Sang-oh, who is head of the Fair Trade Group at Yoon & Yang (Training Institute) 34th class), Attorney Hwang Jae-ho (Training Institute 34th class), an expert in disputes in the insurance and commercial fields and a former general trial researcher (chief judge) of the Supreme Court’s Commercial Joint Group, attended as a presenter.
<img loading="lazy" src="https://pimg.mk.co.kr/news/cms/202411/25/news-p.v1.20241125.12d569f2808541909acb3642c6cde7f4_P1.jpeg" orgwidth="700" orgheight="525" alt="한창훈 화우 변호사가 보험업계 실무 법률 10대 이슈를 설명하고 있는 모습.”/> news/cms/202411/25/news-p.v1.20241125.12d569f2808541909acb3642c6cde7f4_R.jpeg" data-width="1440" data-height="1080" /> Enlarge the photo Han Chang-hoon, lawyer at Yoon & Yang, explaining the top 10 legal issues in the insurance industry.
In his presentation on ‘Major Issues and Implications of Insurance Regulation in 2024’, Attorney Chang-Hoon Han revealed that the current insurance regulation is changing in the direction of strengthening regulation again after the regulation was eased from ex-ante regulation to ex-post supervision in 2015. In addition to the current status of the Korean insurance industry, 22 noteworthy insurance regulatory issues in 2024 were also presented in detail. One lawyer said, “Financial authorities are expected to present detailed policy tasks through the Insurance Reform Conference by around January 2025 in accordance with the three policy directions of consumer protection, strengthening soundness, and discovering growth engines for the insurance industry, so pay attention to the discussion process.” “Therefore, there is a need to actively respond to changes in the rapidly changing regulatory environment,” he emphasized. In particular, starting next year, in conjunction with the introduction of an accountability structure, it is expected that there will be more cases of holding the CEO accountable when various problems occur.
Lawyers Soo-kyung Lee and Joo Min-seok gave a presentation on ‘Major issues and implications of the Personal Information Act and Credit Information Act related to the insurance industry.’ Attorney Lee introduced the internal organization in charge of the Personal Information Protection Committee’s investigation, the specific procedures from the start of the investigation to written investigation, on-site investigation, and disposition, and explained in detail the calculation procedure for fines during each disposition. Attorney Joo said, “Among the cases where a fine of 3% of the total sales of a financial company has been imposed among the cases of sanctions for violating the Credit Information Act, there are cases where a fine of 3% of the total sales of a financial company has been imposed.” He added, “We must thoroughly check in advance to ensure that the Credit Information Act is not violated in the process of using personal credit information.” “This is necessary,” he emphasized.
Attorney Jeon Sang-oh (head of the Fair Trade Group), who presented the ‘Fair Trade in the Insurance Industry’ section, provided a rich explanation of the Fair Trade Commission’s past sanctions and recent trends, as well as systematic responses to various fair trade issues that may arise in the insurance industry. presented a plan. In particular, he emphasized, “The importance of responding to fair trade issues in the insurance industry is growing day by day, such as the issue of not meeting the qualifications of major shareholders due to criminal punishment for violating the Fair Trade Act and the increased possibility of imposing large fines due to raising the imposition standards.” He also explained that interest in issues such as collusion in information exchange between insurance companies, provision of disadvantages to GAs and planners, and unfair support to affiliates is increasing recently.
In his presentation on ‘Issues and Implications of Recent Insurance Precedents’, attorney Jae-ho Hwang introduced recent precedents related to insurance cases, explained what to pay particular attention to when defending insurance cases, and explained how to write effective insurance terms and conditions in line with the court’s insurance terms and conditions interpretation methodology. presented.
In his welcoming speech, CEO Myungsoo Lee said, “I hope this will be a helpful opportunity for those who are trying to develop a business model that adapts to changes in demographic structure and customer demand while responding to the rapidly advancing work diversification and expansion of digital finance.” “Fanwoo will continue to hold regular insurance seminars every year to consider the challenges and legal issues we face as a partner of the insurance industry and insurance companies that support our economy and society,” he said.
The Huawoo Financial Group Insurance Team is a team of lawyers, advisors, and experts from the insurance field of the Financial Supervisory Authority. We aim to accurately diagnose regulatory risks arising in the insurance field and provide optimal answers to complex legal and institutional issues. We regularly publish ‘Four Woo Insurance News’ to help insurance industry workers easily understand and respond quickly to various issues related to the insurance industry, such as insurance policy trends, insurance precedents, and legal interpretation cases.
What are the potential long-term consequences of increased CEO accountability for the overall stability and risk management practices within Korean insurance companies?
## Open-Ended Discussion Questions Based on the Insurance Industry Article:
This article highlights several critical changes and challenges faced by the Korean insurance industry. Let’s break it down into thematic sections and formulate open-ended questions to encourage insightful discussion:
**Section 1: Regulatory Landscape and CEO Responsibility**
* **Question 1:** The article mentions a shift back towards stricter regulations in the insurance industry. What are the potential benefits and drawbacks of this trend? How can insurance companies ensure compliance while remaining innovative and competitive?
* **Question 2:** “CEO responsibility will be strengthened” in response to the introduction of a new accountability structure. What specific actions can CEOs take to prepare for this increased accountability and mitigate potential risks?
**Section 2: Data Protection and Fair Trade Practices**
* **Question 3:** Both the Personal Information Act and the Credit Information Act are crucial for protecting consumers in the digital age. How can insurance companies balance their need to collect and utilize data with the responsibility of safeguarding customer privacy?
* **Question 4:** The article mentions concerns over collusion, unfair practices towards GAs and planners, and support for affiliates. What strategies can promote ethical and transparent business practices within the insurance industry? What role should regulatory bodies play in monitoring and enforcing ethical conduct?
**Section 3: Adapting to Industry Trends and Legal Developments**
* **Question 5:** The insurance industry is facing a rapidly changing landscape with evolving customer expectations and technological advancements. What innovative business models or strategies could help insurance companies adapt to these changes and remain relevant in the future?
* **Question 6:** The article emphasizes the importance of understanding recent precedents and legal interpretations in insurance cases. How can legal professionals and insurance companies work together to ensure clarity and consistency in applying the law to complex insurance issues?
**Section 4: Role of Law Firms and Industry Partnerships**
* **Question 7:** What unique perspectives and expertise can law firms like Yoon & Yang bring to the table in assisting insurance companies navigate these new challenges? How can collaborative partnerships between law firms and insurance companies be strengthened to foster mutual benefit?
* **Question 8:** The article mentions the ‘Four Woo Insurance News’ publication. What other resources or initiatives could facilitate knowledge-sharing and promote a deeper understanding of industry trends and regulatory changes within the insurance sector?
These open-ended questions are designed to encourage thoughtful discussions and consider various perspectives on the complex issues facing the Korean insurance industry.
