KIDI explained that several companies received poor scores due to their failure to provide additional documentation explaining difficult terms. (image: Korea Bizwire)
SEOUL, May 4 (Korea Bizwire) — AIA Life and Hyundai Life have been selected as the insurance companies that provide the most comprehensible insurance contracts, according to a May 3 report conducted by the Korea Insurance Development Institute.
The institute assessed contracts from 24 insurance companies in terms of their clarity, comprehensibility and brevity.
AIA Life and Hyundai Life were the only two insurance companies to earn more than 80 points on the 100-point scale.
Among non-life insurance companies, Hyundai Marine & Fire Insurance and AIG Korea Insurance earned between 70 and 80 points.
However, about 10 life insurance companies were found to be offering poorly written, complex contracts, as they earned less than 60 points.
Hanhwa Life, Prudential Life, Dongbu lIfe, Alianz Life, Mirae Asset Life, Kyobo Life, KDB Life, DGB Life, KB Life and Dongyang Life were the companies earning poor scores on the assessment.
Samsung Fire & Marine Insurance, Meritz, Hanwha Damage Insurance, LIG Insurance and Heungkuk Fire Insurance were the non-life insurance companies earning less than 60 points.
The institute explained that several companies received poor scores due to their failure to provide additional documentation explaining difficult terms, although the companies did earn good scores for brevity.
By John Choi (johnchoi@koreabizwire.com)
