April 25, 2024

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The head of the financial regulator on Feb. 26 urged insurance firms to make their policies easier to understand and explain plans in simpler terms.

Choi Jong-ku, chairman of the Financial Services Commission, made the remarks at a meeting with senior executives of insurance firms earlier in the day. 

Understanding insurance policies is difficult for consumers because of complicated language and terminology, the senior official said.

Choi, who served as a chief executive of Seoul Guarantee Insurance in 2015, said he also failed to follow his insurance policies to the end because they are too complicated.

To help make insurance policies easier to understand, the FSC will encourage insurance firms to let consumers participate in efforts to write, verify and evaluate policies, Choi said.

Last year, Samsung Life Insurance decided to partly compensate about 55,000 clients of its immediate payment annuities over a payout dispute, defying the advisory by financial authorities to provide full compensation.

By Ram Garikipati and newswires (ram@heraldcorp.com)