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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, August 23, 2025 – The Financial Supervisory Service (FSS) has imposed fines on KB Insurance and AIG Korea for overcharging policyholders in violation of insurance contract terms. Both companies were found to have collected premiums that should have been waived or terminated under policy conditions.
The FSS recently levied a fine of KRW 76 million on KB Insurance. Investigations revealed that from 2021 to 2024, the insurer failed to apply premium waivers specified in contracts for 170 policies, resulting in excess charges of approximately KRW 2.34 billion. In addition, in nine cancer-related contracts where benefits were already paid, the company neglected to terminate riders and collected an extra KRW 1 million in premiums.
AIG Korea was also fined KRW 1 million for similar violations. Between 2021 and 2023, the insurer failed to terminate riders in six cases involving cerebrovascular disease benefits, leading to excess charges of about KRW 600,000.
The FSS has also conveyed compliance-related instructions to former and current employees involved in the cases, noting that internal corrective measures are required to prevent recurrence.
The regulator emphasized that strict enforcement of policy terms is essential to protect consumers and maintain trust in the insurance sector.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
