The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) of Korea have issued strong warnings to certain insurers in the country for engaging in unethical practices by promoting insurance sales based on the Fukushima nuclear disaster.
Both regulators stood firm in their stance against unfair solicitation tactics employed by the unnamed insurers. Specifically, these insurers were found to have conducted telephone marketing campaigns stressing the necessity of cancer insurance due to the potential spread of radiation from the Fukushima nuclear power plant, which could lead to an increased cancer risk in South Korea in the future.
According to a report from Korea Bizwire, the financial regulators urged these insurers to cease these business practices immediately and take steps to prevent their reoccurrence. An internal control meeting with insurance auditors was also held to emphasise the implementation of stringent internal controls and prevent the dissemination of exploitative marketing that preys upon the anxiety of the public.
The regulators also reiterated their commitment to monitoring sales activities that generate consumer anxiety based on unscientific information. Any violations of the Financial Consumer Protection Act identified during this process will result in prompt inspections and strict actions to be taken accordingly, the regulators said.
Elsewhere in the country, South Korea is exploring a reform in its laws as concerns grow over the increasing number of foreigners abusing loopholes in the country’s private healthcare insurance services.
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