South Korea’s Financial Services Commission (FSC), the top financial regulator in the country, has announced plans to ease financial licensing regulations, including within the local insurance market. The intention is to help drive innovation and job growth for insurers, banks, investment firms and other such institutions.
The benefits for the insurance sector, said the FSC, include allowing more smaller, specialised insurers to offer their services online by reducing the minimum capital requirements for such online-only entities. A system that would enable smaller insurers to provide specialised short-term coverage – such as travel insurance – has also been mooted, as these insurers would likely pose less risk.
The FSC has said that it will establish a committee to advise regulators on the best route forward.