General Insurance Association of Korea to Work with National Assembly to Establish Insurance Fraud Response System

[Financial News] The General Insurance Association of Korea is working with the National Assembly of the Republic of Korea, the government, investigative agencies and research institutions to strengthen the response system against insurance fraud. They will discuss legal and institutional improvements to address new types of insurance fraud involving generative artificial intelligence (AI) and deepfakes, including information sharing between public and private insurers and the exchange of suspected-fraud information among agencies.
The General Insurance Association of Korea said on the 16th that it held the launch ceremony and seminar for the National Assembly Research Forum on Preventing Insurance Crimes at the National Assembly Members' Office Building.
The forum is co-chaired by So Byung-hoon of the Democratic Party of Korea and Jung Jeom-sik of the People Power Party. The event was attended by National Assembly Deputy Speaker Park Duk-hyum and Democratic Party of Korea floor leader Han Byung-do, as well as lawmakers and officials from the Financial Services Commission (FSC), the Financial Supervisory Service, the Korean National Police Agency, the Korean Institute of Criminology and Justice (KICJ), and the insurance industry.
The seminar focused on “Measures to Innovate the Insurance Fraud Response System” and discussed ways to link information between public and private insurers and establish a joint response system among relevant agencies.
Jung Young Jin, a professor at Inha University, presented the need for and ways to establish an effective information-sharing system between public and private insurers. Bomi Lee, a former researcher at the KICJ, outlined the need to divide roles among relevant agencies and establish a joint response system.
The need to upgrade the response system has also grown as new technologies, including generative AI and deepfakes, have recently been exploited for insurance fraud.
Kwon Dae-young, vice chairman of the FSC, said, “Insurance fraud is evolving beyond individual misconduct into organized crime involving collusion among medical institutions, auto repair shops, brokers and insurance agents.” He added, “Generative AI and deepfakes are also being exploited.”
He continued, “Sharing suspected-fraud information among relevant agencies is important to respond swiftly to insurance fraud that exploits AI.” He added, “Legislative measures, including amendments to relevant laws, also need to be pursued.” The FSC launched the Task Force for Establishing an AI-Based Insurance Fraud Prevention System in June and is discussing plans to build a platform to counter crimes involving the misuse of generative AI.
Lee Byung-rae, chairman of the General Insurance Association of Korea, said, “There are limits to addressing insurance crimes through the efforts of individual institutions alone.” He added, “The National Assembly, government, investigative agencies, research institutions and the insurance industry need to work closely together to establish a systematic, cross-government foundation for responding to these crimes.”
As the forum’s secretariat, the General Insurance Association of Korea will support future research and policy discussions. It will also back efforts to strengthen information sharing and investigative cooperation among relevant agencies and identify legal and institutional improvements needed to combat insurance fraud.
[email protected] Hong Ye-ji Reporter