In light of the increase in insurance remodeling cases, where existing policyholders are led to repurchase similar policies to those previously enrolled in, the financial authority is pursuing procedural improvements, such as the introduction of a “comparative information disclosure system” that would allow consumers to compare the terms of a new product they intend to purchase with the terms of similar products they have already purchased from other insurers. The following is a summary of the key proposals.
 

The introduction of a “comparative information disclosure system” under the Korea Credit Information Services, whereby insurers will provide to prospective policyholders the terms and conditions of similar products they purchased from other insurers for comparison during the solicitation process.
 

In the past, only three broad categories were considered in determining what would constitute “similar policies” for purposes of comparison disclosures (i.e., life insurance, non-life insurance, and third-party insurance), which made meaningful, substantive comparisons difficult. The proposed improvements would further segment the products subject to comparison to 20 different categories, pursuant to Article 1-2 of the Enforcement Decree of the Insurance Business Act (i.e., life insurance, 14 types of non-life insurance, three types of third-party insurance and two types of savings and pension products), to allow consumers more meaningful comparisons.
 

The financial authority will enhance the information disclosure requirements by requiring more detailed information to be disclosed to consumers under the comparative information form, etc.
 

The proposed “comparative information disclosure system” is expected to be designed and implemented by the Korea Credit Information Services, in consultation with insurance companies, by the end of December 2023.

[Korean Version]