South Korea's 22 life insurers have pledged to adopt consumer-centered management policies, including shifting all decision-making to consumer standards.
The companies will pursue tangible changes across all processes, from product development and sales to claims payment and post-management. The Korea Life Insurance Association announced five promises to consumers, that is aimed at restoring consumer trust and implementing consumer-centred management. The five pledges are: shift all decision-making to consumer standards; avoid selling products that consumers do not understand or that may cause disadvantages; establish a healthy sales order; expedite insurance payouts, and protect underinsured groups.
The decision was taken at the Association’s “Life Insurance Promise Day" event held in Seoul, which was attended by the CEOs of all 22 domestic life insurers, along with officials from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
In a joint resolution, the CEOs of all domestic life insurers pledged to shift all decision-making to consumer standards. They also vowed not to sell products that consumers cannot understand or that may cause disadvantages, and to restore trust by establishing a sound sales order. The resolution also included commitments not to delay insurance payments and to ensure that no one is excluded from insurance coverage.