On Oct. 7, SK FSS proposed guidelines for insurance coverage limits.
SK FSS proposed Guidelines for calculating coverage limits for insurance products, for reasonably setting and managing coverage limits at the time of product design.
Follows SK FSC Oct. 2024 issued fair insurance competition measures, see #228858.
Overview of Guidelines
In principle, the coverage limit must be calculated at a reasonable level, taking into consideration the policyholder's risks as well as insurance company's risks.
Coverage limits must be set for each type of coverage in principle, but if level of costs incurred by risk level within one type differs greatly, the limit may be set separately.
Insurance companies shall make sure that the total coverage limit for coverage of the same risks does not exceed the coverage limit calculated for each type of coverage.
Shall set coverage limits that correspond to risks when developing new coverage type or modifying limit of types of coverage while establishing reasonable internal control.
The proposed guidelines will apply to new contracts that are signed after Jan. 1, 2025.
Consultation Period
Comments shall be submitted by Oct. 28, 2024.
Nov. 2024 Guidelines Finalized
On Nov. 29, 2024, SK FSS published the finalized Guidelines for calculating coverage limits for insurance products, effective for one year from Jan. 1 until Dec. 31, 2025.
Regulators
SK FSS
Entity Types
Ins
Reference
RF, Gd 2024-41001, 11/29/2024; CP 10/7/2024
Functions
Actuarial and Valuation; Audit; Compliance; Financial; Product Design; Risk
