Slowest-paying insurers in Korea revealed

Several big names among the list of insurance companies with the highest ratio of delayed payouts

Slowest-paying insurers in Korea revealed

Insurance News

By Gabriel Olano

A South Korean legislator has revealed the insurers with the longest delayed claim payments and it turns out that these are some of the most well-known insurers in the market.

Park Yong-jin, a member of the opposition Minjoo Party, cited data from money watchdog Financial Supervisory Commission (FSC), showing that among life insurers Samsung Life insurance paid 14.4% of its claims after the prescribed period of three business days, followed by Mirae Asset Life Insurance (9.9%), Prudential Life Insurance (6.6%), and AIA Life Insurance (6%).

Meanwhile, for non-life insurers, Meritz Fire insurance was the slowest, followed by MG Non-Life Insurance (7.3%), Lotte Insurance (7.1%), and AIG (5.5%).

Insurance regulations say that providers must release all claims within three business days after receiving a claim document. If further investigations are needed, then life insurers must release payment within 10 business days, while non-life insurers must do so within seven.

“The delayed payment of insurers’ insurance money is increasing damage to financial consumers,” Park was quoted as saying by Business Korea. “I will demand that the FSC launch special investigations into insurers with high delayed payment ratios.”

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