“Reviewed at the level of 2 billion to 3 billion won based on the capital of establishing an insurance company”
Significantly eased requirements for establishing a small-term insurance company that is close to life, such as driving dogs and electric scooters
In the News Reporter Eun-Shil YooㅣThe requirements for establishing an insurance company that can handle life-friendly small-term insurance such as driving a companion dog or an electric scooter are greatly eased. Financial authorities are reviewing the requirements for establishing capital for insurance companies at the level of 2 to 3 billion won.
According to the financial authorities on the 18th, the Financial Services Commission plans to announce the legislation of the enforcement decree for the’small short-term professional insurance business’ at the end of this month. According to an official from the Financial Services Commission, the minimum capital requirement for short-term insurance companies currently being discussed is about 2 billion to 3 billion won.
An official from the Financial Services Commission said, “In the amendment to the insurance industry that passed the National Assembly in November last year, the minimum capital requirement was stipulated to be more than 1 billion won.” There is no such thing as 2 billion ~ 3 billion won under review.”
It can be interpreted that the financial authorities are looking for a balance of capital standards between’possibility of damage to consumers’ and’promotion of insurance business rights’. This is because it was judged that the minimum capital stock of 1 billion won in the amendment did not meet various requirements such as financial soundness.
In the meantime, the requirements to establish capital for comprehensive insurance companies had to exceed 30 billion won, and life insurance and auto insurance had to exceed 20 billion won. Due to such high entry regulations, Carrot Insurance is the only insurance company newly established in the last 5 years.
If the minimum capital stock is determined to be between 2 billion and 3 billion, products that guarantee various risks in daily life such as dog insurance and travel insurance are expected to be activated. If fintech companies with creative ideas enter the insurance industry, more innovative insurance products can emerge.
However, there are still voices of concern about the lowering of the establishment standards. Some point out that it is unstable in the company’s financing and operation, and that it is difficult to guarantee profitability only with short-term insurance.