FSS Conducts On-Site Inspections of Insurance Company Dispute Complaints... 14 Locations in Sequential Order, Starting with KB and DB Insurance

[Financial News] The Financial Supervisory Service has launched on-site inspections to respond to the surging number of complaints regarding insurance-related disputes.
According to the financial industry on the 10th, the Financial Supervisory Service (FSS) has formed a joint "relay-style on-site rapid dispute processing team" composed of insurance departments and has been inspecting the status of dispute processing at insurance companies since the 7th. Starting with KB Insurance and DB Insurance on this day, the FSS plans to sequentially inspect four life insurance companies and ten non-life insurance companies by October 30.
An insurance industry official explained, "As the use of artificial intelligence (AI) has become commonplace, there has been an increase in cases where customers file lengthy complaints using AI," adding, "We are now in a situation where we are responding to AI-driven complaints using AI."
In fact, the number of disputes filed in the first half of this year was 15,436, a 47.8% surge compared to the same period last year (4,993). The number of cases processed also increased by 2,832 (25.2%) to 14,062, but the increase in the number of disputes filed appears to be steeper.
This is the result of an increase in dispute filings utilizing AI, coupled with strengthened insurance payout reviews aimed at preventing payout leakage. The Financial Supervisory Service plans to pilot an AI-based complaint and dispute processing service this month, while also working to resolve backlogged disputes through its rapid response team.
Previously, the Financial Supervisory Service (FSS) received "Dispute and Complaint Management Strategies" from insurance companies, which included measures to eliminate factors triggering disputes, analyses of dispute trends, and management objectives. This required financial institutions to directly formulate response plans for complaint disputes.
This measure is in response to the continued increase in disputes despite improvements in insurance product terms and conditions, payout standards, and the expansion of dispute mediation personnel.
It is reported that this inspection will focus on checking the appropriateness and implementation of the strategy. Any deficiencies will be addressed through on-site guidance.
This rapid response team includes not only personnel dedicated to dispute resolution but also staff responsible for product supervision and systems, such as those for automobile and medical indemnity insurance. This measure is intended to allow relevant departments to review matters requiring system improvements, such as terms and conditions, during the inspection process and actively incorporate them.
An official from the Financial Supervisory Service stated, "If issues such as consumer damage are identified on-site, we will coordinate with the Inspection Bureau to promptly take corrective measures and provide relief for consumer losses."

[email protected] Park Mun-su Reporter