Financial Consolidation
The financial authorities are planning to allow insurers to be housed in combo stores of banks and securities companies. The determination is to allow the stores to handle coverage insurance so that they can function as channels providing all types of financial products.
In this context, the Financial Services Commission is currently collecting opinions from insurance agents. “Funds and banking products have their own limitations in the one-stop service we are planning to provide for consumers, and we will wrap up the decision-making process as soon as possible,” the organization explained, adding, “Once the decision is made, the Insurance Business Act will be revised for immediate implementation.”
The policy is expected to be implemented from July this year. Then, insurers in combo stores can sell all of their products, ranging from savings insurance and pension funds to health insurance and coverage insurance. The rule limiting the ratio of certain insurers’ products to 25 percent of the total will not be applied, since this does not constitute consignment sale in banks.
Under the circumstances, insurers associated with financial holding companies such as KB, Hana, and NH are welcoming the news, whereas independent insurers like Samsung Life Insurance are opposed to it. “Competition among financial companies is likely to heat up in the asset management market once the policy takes effect,” said an industry expert.