Input 2020.05.24 12:00
Financial Supervisory Service alerts consumers to illegal and shortcut marketing of offshore insurance
"Domestic consumer protection system is not applied … beware of false advertising"
As such, offshore insurance was packaged with “overseas direct sales” marketing and sold illegally and illegally.
The Financial Supervisory Service issued a caution to consumers on the 24th, saying, "Be careful when you are invited to join offshore insurance."
Offshore insurance means signing an insurance contract with a foreign insurance company that does not have an insurance business license in Korea. Often, Hong Kong insurance products are mainly sold. It refers to direct contracts with overseas insurance companies by mail or phone, without going through foreign insurance companies in Korea.
Recently, as demand for high-yielding investments has increased due to the low interest rate, there are cases in which such insurance is recommended. If you search for "offshore insurance" or "Hong Kong insurance" on the Internet, you will see advertisements such as "Gangnam Rich Man's Dollar Re-Tech" and "Depression New Investment Method."
However, as it is directly contracted with an overseas insurance company, consumers cannot be protected by Korean financial authorities, so consumers need to judge carefully.
First of all, the Financial Supervisory Service advised, "When you sign up for offshore insurance, you should check whether the insurance policy is accepted by ordinary consumers."
In principle, it is forbidden for Koreans to sign insurance contracts directly with foreign insurance companies. Limited coverage is only available for some insurance contracts. If you sign up for an insurance product that is not permitted, you may be subject to a penalty of 10 million won or less.
You should also pay attention to illegal and shortcut marketing. It is illegal for Koreans to recruit insurance by posting postings and videos of contents recommending offshore insurance. Foreign insurance companies must report to the FSS in advance to advertise their insurance products, but there have been no cases reported.
There are also a lot of problems with advertising content. The Financial Supervisory Service said, “There are many cases that provide false information such as a definite future dividend, a long term guarantee period, and cheap insurance premiums.” I do it. ”
It is also necessary to be careful that the Korean system that protects financial consumers does not apply when signing offshore insurance.
Offshore insurance is not subject to domestic depositor protection. Even if there are problems in the insurance payment process, civil complaints and dispute settlement through the Financial Supervisory Service are also impossible.
The Financial Supervisory Service has decided to take steps to delete illegal posts from offshore insurance. In addition, it decided to continuously check the status of offshore insurance sales through SNS with the Life Insurance Insurance Association.