The General Insurance Association of Korea (GIAK) has established a Consumer Protection Council as a new industry consultative body on policyholder protection in the non-life market.
At its first meeting, the council identified two initial areas of work: revising fault-ratio recognition standards for automobile accidents and developing an artificial intelligence-based system for screening non-life insurance advertising. Participants agreed in principle that marketing materials should be subject to automated pre-screening by an AI engine and that a real-time detection framework should be built to flag potential issues as advertisements are distributed. The discussion reflects growing focus on how claims allocation rules and sales practices influence consumer outcomes in motor and other personal lines.
GIAK Chairman Lee Byung-rae presented the council as an industry-led mechanism for responding to consumer protection expectations. “It is meaningful that the industry itself has launched an autonomous body to lead fundamental changes with a resolve for constant self-improvement, responding to the demands of the times for stronger financial consumer protection,” Lee said, as reported by Seoul Economic Daily. Lee said the council is intended to encourage earlier identification of conduct and product risks within firms. “It is time for a paradigm shift in which the industry itself identifies and resolves improvement tasks from the consumer’s perspective, moving away from the reactive and passive approach of responding only after issues arise,” he said. He also linked the council’s work to the sector’s operating environment. “I hope the council will serve as a driving force for strengthening competitiveness that restores trust in the non-life insurance industry and leads the sector’s sustainable growth,” he said.
The council’s launch comes at a period when Korea’s general insurance segment is projected to expand through 2029, while regulation, technology, and demographics reshape demand across core lines such as motor, liability, and health. According to GlobalData, direct written premiums (DWP) in the general insurance market are forecast to increase from KRW 33.7 trillion in 2025 to KRW 39.1 trillion in 2029, implying a compound annual growth rate of 3.8%. The research firm expects the market to grow 2.8% in 2025, with liability premiums rising in line with tighter compliance requirements and emerging exposures, including cyber and virtual asset risks.
Health and personal accident business is also projected to grow, with oversight by the Financial Services Commission and the Financial Supervisory Service, and with an aging population influencing demand for medical and long-term care coverage. Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said that motor, liability, and health-related products are expected to remain central to the market. “The revival in vehicle sales and tightening regulations, including data protection regulations, have collectively triggered demand in these lines. Heightened health following the COVID-19 pandemic continues to drive private health insurance growth, with longer waiting times in the public healthcare system and rising medical costs pushing consumers further toward health products,” Sahoo said.
For non-life insurers, the Consumer Protection Council functions as an industry-level forum at a time of product innovation, digital distribution, and evolving regulation. Market participants are expected to monitor how the council addresses practical issues such as the interaction between revised auto fault-ratio standards and claims costs, the governance of AI-based advertising review tools, and the consistency of new liability and health offerings with supervisory expectations. As competitive, technological, and regulatory pressures build, insurers and intermediaries are likely to track whether the council’s discussions lead to shared approaches or reference points on underwriting, claims handling, and disclosure. Its activities are expected to intersect with other initiatives related to customer treatment, data usage, and disclosure across Korea’s non-life insurance market.
