South Korea’s financial regulator eased disciplinary actions on Samsung Life Insurance and Hanwha Life Insurance for their overdue suicide claims to let them off temporary business suspension after they agreed to immediately pay out dues to policyholders.
The Financial Supervisory Service (FSS) held a review committee on Thursday and downgraded its punitive actions a notch to warning level for the country’s two largest life insurers - Samsung Life Insurance and Hanwha Life Insurance - and their chief executives.
Last month, the FSS announced it was suspending some business operations for three months for Samsung Life and two months for Hanwha and reprimanding CEO Kim Chang-soo of Samsung Life and Cha Nam-gyu of Hanwha. Kim freed from the regulatory action can pursue another term in office in upcoming shareholder’s meeting. Cha also would be able to seek to extend his term next year.
But still, the regulatory action prevents them from starting a new business for a year, which would interrupt Samsung Life’s pursuit to transform into a financial holding group and their expansion in overseas.
The life insurers have been criticized for failing to pay out death claims for subscribers who committed suicide. The insurers had sold policies for accidents that cover suicides that occur two years after contract initiation but they denied the payouts without any explanation to families of policyholders who committed suicide.
By Kim Tae-sung
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]