KOREAN INSURANCE STAFF CONTINUE CAMPAIGN AGAINST BANCASSURANCE

A joint committee of labour unions from South Korean insurers and an association of 42,000 insurance brokers have stepped up their campaign against the extension of bancassurance in the country. The recent statement asserted that the committee would try to enlighten policy makers as to why bancassurance should not be extended. Investment-linked life policies were allowed to be sold via banks in South Korea from August 2003. In April 2005 this was extended to accident insurance and illness insurance, while in October 2006 this was extended further to include accident and illness insurance that permitted partial returns of premiums if no claim was made. From April this year, if the expansion continues as scheduled, banks will be able to sell motor cover, whole of life insurance and critical illness insurance. However, a bill is scheduled to be introduced to parliament, which is thought likely to pass, that would cancel this last stage. The campaign claims that further expansion would cost some 200,000 agents’ jobs, putting pressure on a government that has promised large-scale job creation. The government initially planned to allow banks to sell all other forms of insurance beginning in April 2005, but the full-fledged expansion of the program has been delayed by strong opposition.