Insurer-raised disputes in South Korea dip by 13%

Insurance regulator discourages insurers from filing lawsuits against customers over payments

Insurance News

By Gabriel Olano

The number of lawsuits initiated by insurers in South Korea against customers over payments has declined by 13%, according to the Financial Supervisory Service (FSS)
From 5,579 cases in 2014, 2015 had only 4,836 cases, a 13% drop. The South Korean insurance regulator attributed the decline to efforts by the government to limit insurance firms from diverting resources to reduce insurance payments. By industry, non-life insurers’ lawsuits dropped by 13%, while life insurers’ were reduced by 17%.
The FSS pointed out several insurance firms’ unfair or necessary legal actions, stressing the need for reform.
“Because insurance firms are well-equipped with numerous experts with vast legal knowledge and experience, consumers cannot help but be at a great disadvantage should the firms raise lawsuits against their customers,” an FSS official told the Yonhap News Agency.
“The FSS continues to encourage local insurance companies to exercise more self-restraint so they don’t use their vast resources and dominant positions, and raise unfair claims against their customers,” the anonymous official added.

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