The top financial regulator on Wednesday called on insurance companies to swiftly pay legitimate insurance claims while stressing the need for them to refrain from disputing claims to win the trust of consumers.

Kim Byoung-hwan, head of the Financial Services Commission, also urged the insurance firms to invest their funds in ways that can help improve the local economy.

“For the insurance industry to ensure its sustainable growth, it must first consider why the people’s trust in the industry is so low, while it is called a dispute-prone industry,” Kim said in a meeting with the heads of 10 local insurance firms and other related organizations.

Kim insisted that the “swift payment of insurance claims is the basis of insurance service.”

He also stressed the need for the insurance firms to digitalize their insurance claim service by Oct. 25 as scheduled, a move aimed at simplifying the claims process for consumers, calling it a promise they made to their 40 million customers.

The chief financial regulator
also highlighted the need for insurance companies to increase their investment in “safe” projects that can also contribute to economic development, such as government rental housing.

Wednesday’s meeting was the third of its kind that Kim has held with various financial industries since he took office late last month, following his meetings with officials from banks and credit finance firms.

Source: Yonhap News Agency