However, health insurance is characterized by frequent claims for insurance compared to savings insurance or life insurance that life insurers previously sold. Since it is a product that prepares for diseases that often occur in life, insurance claims are made more often. As a result, complaints about insurance payments are also on the rise. The number of complaints filed by the five major life insurers regarding insurance payments in the first half of this year was 2,401, up 8% from 2,226 in the same period last year.

Major insurance companies sympathize with the FSS chief’s remarks that consumer benefits should be increased in insurance payments, but are worried about the possibility that the refusal to pay itself will be defined as an immoral act. Director Lee met with CEOs of large insurance companies earlier this month and said, “The perception that ‘it is easy to sign up but it is difficult to receive insurance money’ has not changed significantly,” signaling an environment in which consumers can receive insurance money more easily. An insurance industry official said, “refusing to pay consumers who do not meet the requirements for receiving insurance money is an essential act to maintain the insurance’s loss ratio and insurance premiums at an appropriate level. It is dangerous that the payment itself is interpreted as immoral.”

Insurance companies are also nervous about the new FSS chief’s expression of his willingness to legislate a “one-sided binding force.” The one-sided binding force, which is also President Lee Jae-myung’s pledge, means that if a civil petitioner accepts the FSS’s dispute settlement plan for a small dispute case, it gives the mediation the effect of “judicial reconciliation” regardless of whether the financial company accepts it or not. Financial companies cannot file a lawsuit against this and must follow the mediation plan. Some have insisted on introducing a system that strengthens consumer protection, but it has not been institutionalized in the face of opposition that it deprives companies of their rights in court. In the past, former FSS chief Yoon Seok-hun also tried to legislate a one-sided binding force but failed.

Non-life insurers point out that acknowledging one-sided binding power not only violates corporate autonomy, but can also be an obstacle to consumer protection. A typical example is auto insurance and other liability insurance. In other products, if a consumer dispute arises between an insurance company and a contracting party, auto insurance is a structure in which the insurance company fights with the car accident partner on behalf of the contracting party. They say that customers’ rights may be violated if insurance companies unconditionally follow the FSS’ dispute settlement plan in the process of arguing with the other car owners over the ratio of negligence. An insurance company official said, “Sophisticated design should be supported.”