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[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) has imposed a fine of 200 million won on DB Insurance for excessively calculating insurance premiums and failing to comply with basic document management standards.

On the 23rd, the FSS announced that it levied the fine on DB Insurance on the 12th. Additionally, the company’s employees received a reprimand for their actions.

DB Insurance was found to have violated principles related to premium calculation and document management standards. Specifically, from November 2016 and June 2020, it improperly calculated the premium rates and risk rates for the "Special Clause for Treatment Expenses for Traffic Accident Victims," included in 79 insurance products, leading to inflated premiums.

In cases where the victim had cited the perpetrator’s indictment as a reason for insurance payout, DB Insurance based its risk rates on the number of victims without considering the perpetrator's indictment status, as reported in police crime statistics.

Furthermore, DB Insurance failed to adequately verify the appropriateness and accuracy of the foundational documents. It was revealed that the chief actuary issued verification letters without conducting sufficient checks and confirmations regarding the validity of the documents' contents.

 

 

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