The Insurance Reform Conference, which ran for ten months, has concluded with mixed evaluations regarding innovation and regulation. A total of 74 tasks were identified, including the relaxation of bancassurance regulations, but there is significant concern about the regulatory and financial burdens that may arise.
The Insurance Reform Conference, which started in May last year, concluded with its seventh and final meeting on the 11th. The financial authorities announced plans to implement over 70 tasks rapidly while transitioning to a system of continuous reform discussion, thus ending the regular meetings. The industry expressed understanding of the goals of restoring trust and fostering innovation but was concerned that increased regulation without consideration of reality might exacerbate industry burdens.
At the final meeting, about 130 participants, including CEOs of insurance companies, gathered to discuss and wrap up topics, while a separate “Insurance Reform Debate” was held to consolidate the discussions. The focus was on four key areas: product improvement, sales channel restructuring, the IFRS17 accounting standard, and future strategies. For instance, discussions on product improvements included expanding digital claims processing for indemnity insurance and increasing products supporting pregnancy and childbirth.
There is positive feedback regarding increased communication and joint discussions on regulations and practices between the authority and industry. However, concerns remain about the potential financial burden placed on the industry due to consumer-focused reforms and regulatory enhancements. Some reforms, like restructuring salesperson commissions or enhancing auto insurance comparison services, faced difficulties due to conflicting interests among stakeholders, leaving doubts about achieving meaningful results.
The financial authorities acknowledged these concerns and emphasized their commitment to continuously refining reforms by incorporating industry feedback, with the aim of realizing substantial changes on the ground.