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Market Research Report

Governance, Risk and Compliance - The South Korean Insurance Industry

Published by GlobalData Product code 918442
Published Content info 66 Pages
Delivery time: 1-2 business days
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Governance, Risk and Compliance - The South Korean Insurance Industry
Published: December 5, 2019 Content info: 66 Pages
Description

The Financial Services Commission (FSC), established on January 2, 1999, and the Financial Supervisory Service (FSS), established in 2008, regulate and supervise the South Korean insurance industry. The FSC is responsible for the establishment, enactment, and amendment of insurance legislation. It grants licenses to insurance and reinsurance companies to conduct business in the country.

The FSS is the administrative division of the FSC and is responsible for the supervision and control of business operations and financial status of insurers, reinsurers, and intermediaries. It also registers brokers and agents and authorizes them to conduct insurance auxiliary operations. It functions as a public agency, with autonomous powers to safeguard policyholders' interest.

The principal legislation governing the South Korean industry includes the Insurance Business Act and the Enforcement Decree of the Insurance Business Act. These acts regulate the operation and mediation of policies in the country and provide detailed guidelines to regulate the operations of insurance companies and intermediaries.

Key Findings -

  • The Financial Supervisory Commission and the Financial Supervisory Service regulate the South Korean insurance industry
  • Composite insurance is not permitted in South Korea. However, both life and non-life insurers can carry on accident and health insurance business
  • 100% FDI is permitted in the South Korean insurance industry
  • Motor third-party liability insurance, fire and liability insurance for buildings are the key mandatory classes of insurance in South Korea
  • Non-admitted insurance is permitted for life and reinsurance business in South Korea

The report "Governance, Risk and Compliance - South Korean Insurance Industry" is the result of extensive research into the insurance regulatory framework in South Korea. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Scope

  • The report covers details of the insurance regulatory framework in South Korea.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country's insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.

Reasons to buy

  • Gain insights into the insurance regulatory framework in South Korea.
  • Track the latest regulatory changes, and expected changes impacting South Koreaninsurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance product.
Table of Contents
Product Code: GDIS0088RR

Table of Contents

1 INTRODUCTION

  • 1.1 What is this Report About?
  • 1.2 Definitions

2 GOVERNANCE, RISK AND COMPLIANCE

  • 2.1 Legislation Overview and Historical Evolution
  • 2.2 Latest Changes in Regulation
  • 2.3 Legislation and Market Practice by Type of Insurance
    • 2.3.1 Life insurance
    • 2.3.2 Property insurance
    • 2.3.3 Motor insurance
    • 2.3.4 Liability insurance
    • 2.3.5 Marine, aviation and transit insurance
    • 2.3.6 Personal accident and health insurance
  • 2.4 Compulsory Insurance
    • 2.4.1 Motor third-party liability insurance
    • 2.4.2 Workers' compensation insurance
    • 2.4.3 Fire and liability insurance for special buildings
    • 2.4.4 Fire legal liability insurance
    • 2.4.5 Liability insurance for damage caused by gas accidents
    • 2.4.6 Liability insurance for industries that cause environmental pollution
    • 2.4.7 eBiz liability insurance
    • 2.4.8 Personal accident insurance for students and part-time assistants working in university laboratories
    • 2.4.9 National health insurance
  • 2.5 Supervision and Control
    • 2.5.1 International regulatory authority
    • 2.5.2 Financial Services Commission
    • 2.5.3 National Regulatory Authority
    • 2.5.4 Korea Life Insurance Association
    • 2.5.5 General Insurance Association of Korea
  • 2.6 Non-Admitted Insurance Regulations
    • 2.6.1 Overview
    • 2.6.2 Intermediaries
    • 2.6.3 Market practices
    • 2.6.4 Fines and Penalties
  • 2.7 Company Registration and Operations
    • 2.7.1 Type of insurance organization
    • 2.7.2 Establishing a local company
    • 2.7.3 Foreign ownership
    • 2.7.4 Types of license
    • 2.7.5 Capital requirements
    • 2.7.6 Solvency margin
    • 2.7.7 Reserve requirements
    • 2.7.8 Investment regulations
    • 2.7.9 Statutory return requirements
    • 2.7.10 Fee structure
  • 2.8 Taxation
    • 2.8.1 Insurance premium or policy taxation
    • 2.8.2 Withholding taxes on premium paid overseas
    • 2.8.3 Corporate tax
    • 2.8.4 VAT
    • 2.8.5 Captives
  • 2.9 Legal System
    • 2.9.1 Introduction
    • 2.9.2 Access to court
    • 2.9.3 Alternative dispute resolution (ADR)

3 APPENDIX

  • 3.1 Methodology
  • 3.2 Contact GlobalData
  • 3.3 About GlobalData
  • 3.4 GlobalData's Services
  • 3.5 Disclaimer

List of Tables

  • Table 1: Insurance Industry Definitions
  • Table 2: South Korea - Insurance Regulatory Framework Key Features
  • Table 3: South Korea - Penalty on the Degree of Offense
  • Table 4: South Korea - Life Insurance Regulatory Framework
  • Table 5: South Korea - Property Insurance Regulatory Framework
  • Table 6: South Korea - Motor Insurance Regulatory Framework
  • Table 7: South Korea - Liability Insurance Regulatory Framework
  • Table 8: South Korea - Corporate Tax Rates for the Financial Year 2019

List of Figures

  • Figure 1: South Korea - Insurance Supervision and Control at Various Levels
  • Figure 2: South Korea - Insurance Regulatory Frameworks for Company Registration and Operation
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