The Financial Services Commission (FSC) has announced that an update has been made to the standard information consent form in the insurance industry on 2 January 2026 to promote retrocession contracts. This update will help insurers spread risk and enhance stability in claims payouts for policyholders.
Main revision details
With the revised standard information consent form, primary insurers will be able to obtain consent for providing information from policyholders in place of reinsurers for retrocession purposes.
The purpose of information use by reinsurers (retrocessionaires) is restricted to retrocession contracts only, permitting them to use information about policyholders solely for retrocession transaction purposes. The use of information for other purposes, such as marketing and advertising, will be strictly prohibited.
A retrocession contract with an overseas reinsurer may lead to the overseas transfer of information. In this case, policyholders will be able to check the list of overseas reinsurers and their state jurisdictions that are able to receive information about the policyholder on the website of the primary insurer stated on the standard information consent form.
Expectation and further plan
The updated standard information consent form in the insurance industry is expected to promote retrocession contracts, which will help spread risk for domestic insurers and enhance stability in claims payouts for policyholders, thereby improving the risk-taking capacity of domestic insurers. The revised standard information consent form will be adopted by insurance companies in the first quarter of 2026 after each insurer makes the relevant updates to its data processing system.
Meanwhile, with the revised standard information consent form in place, it is anticipated that the process will resume for Korea to gain the status of a certified and reciprocal jurisdiction with the US National Association of Insurance Commissioners (NAIC). This will provide more opportunities for Korean insurance companies to expand their business operations in the US reinsurance market.