Financial authorities are taking strong measures as the amount of insurance fraud involving insurance agents increased by nearly 20% year-on-year. To prevent insurance fraud involving employees and insurance agents of General Agencies (GAs), joint field training will be conducted with insurance industry associations, and the court is also strengthening penalties for insurance fraud.
Key Points:
Increased Insurance Fraud Detection Amount:Increased by 17.6% from KRW 20.16 billion in 2023 to KRW 23.7 billion in 2024.
Increased by 52.3% compared to 2020.
Increased Number of People Involved in Insurance Fraud:Increased from 1,782 in 2023 to 2,017 in 2024.
Various Types of Insurance Fraud:False insurance claims in connection with MZ gangs.
Disguised skin care procedures as manual therapy by pretending to be fake patients.
Courts Pursue Strengthening Sentences:The Supreme Court Sentencing Commission is pushing to raise the recommended sentence for insurance fraud to a maximum of life imprisonment.
Standards for aggravated punishment for professional offenders are established.
Financial Authorities Conduct Field Training:Joint field training is conducted in seven cities nationwide with life insurance, non-life insurance, and GA associations.
Provide information on recent insurance fraud trends, related laws, and strengthened sentencing standards.
The Financial Supervisory Service said, "We will provide an opportunity for insurance agents to recognize that insurance fraud is a clear crime, not just a simple fraudulent act."
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