The Financial Supervisory Service (FSS) of Korea has signed a memorandum of understanding (MOU) with the National Police Agency, Korea Road Traffic Authority, and the General Insurance Association of Korea to collaborate in eradicating deliberate car accidents used for insurance fraud. This agreement involves regular meetings to share information and devise strategies to tackle this issue.
Deliberate car accident-related insurance fraud is on the rise, accounting for 49.6% of the total insurance fraud detected in 2024, with a sum of 570.4 billion KRW. Among these, the proportion of intentional car accidents is around 30%, increasing from 160 billion KRW in 2023 to 169.1 billion KRW in 2024, marking a 5.7% rise.
These fraudulent activities not only create unexpected victims or perpetrators out of ordinary citizens but also drive up car insurance premiums, ultimately harming consumers financially. To mitigate these impacts, the involved agencies will actively pursue operational collaboration. Regular working-level meetings will be held to create measures to curb intentional car accidents, and information about suspicious cases will be shared more robustly through direct communication lines and meetings.
The investigative capabilities will also be enhanced by employing techniques like the ‘Korean MADYMO,’ to better identify suspects involved in insurance fraud through analyses of minor injury patients. FSS Deputy Governor Kim Sung-wook emphasized the gravity of the situation, where increasing car insurance fraud negatively affects innocent citizens. He stated that the collaboration aims to protect public interests by eliminating intentional car accident fraud, thus contributing to social stability.