(1) Reasons for Proposal
The Amendment prescribes follow-up measures and corrects errors in provisions, etc., in accordance with the amended Enforcement Decree of the Insurance Business Act (promulgated on June 5, 2018), which prescribes “preparation of a transition system between group and individual indemnity medical insurance products” (March 8, 2018; press release), “Innovation/Development Measures for Non-life Insurance, Phase II” (June 4, 2018; press release), and provisions concerning a strengthened obligation to check for the conclusion of dual contracts for non-life insurance.
(2) Major Provisions
A. Prescribe compulsory operation of a transition system for indemnity medical insurance (Article 7-63)
Obligate insurance companies to operate a system for a policyholder of a group indemnity insurance to switch to an individual one upon retirement, and a suspension/resumption system for dual policyholders of individual and group insurance.
B. Modify the scope of exemption from reporting upon non-compliance with standard business manuals (Article 7-49)
Add to the grounds for exemption from product reporting upon non-compliance with standard business manuals cases where non-compliance is inevitable due to the nature of the product and does not undermine the interests of policyholders.
C. Newly insert qualification requirements for certified senior actuaries of non-life insurance companies (Article 9-10-2)
Specify the non-life insurance actuarial services that shall be determined and announced by the Financial Services Commission in accordance with the amended Enforcement Decree of the Insurance Business Act (pre-announced on July 13, 2018; “Innovation/Development Measures for Non-life Insurance, Phase II”).
D. Modify provisions (Article 4-35-5, attached Table 5-6, attached Form 9-2)
Modify provisions in accordance with the amended Enforcement Decree of the Insurance Business Act (June 5, 2018) and correct errors in citations resulting from the transfer of regulations on insurance company executives to the Act on Corporate Governance of Financial Companies.
