FSS will be creating guidelines for telemarketers trying to sell insurance plans over the phone, which include reading the explanatory script at a certain speed while disallowing the mention of high amounts of insurance paybacks which are unlikely. (image: Yonhap)
SEOUL, Apr. 26 (Korea Bizwire) — Telemarketers selling insurance over the phone will now have to pace their explanations at a certain speed to ensure consumer protection, one of many other new measures crafted by the Financial Supervisory Service (FSS).
The FSS, drawing upon the expertise of external professionals to identify 177 specific tasks, created three major task force objectives last year related to innovation in FSS inspections and sanctions; HR and corporate culture; and financial consumers’ rights. The FSS stated that 74 (41.8 percent) of the tasks have been completed while the rest will be carried out this year and next.
For innovation in FSS inspections and sanctions, of the 44 tasks, 32 tasks such as establishing direction for inspections have already been implemented while 12 remaining tasks will be executed within the year.
In line with the new changes, when the FSS formally receives an application for certain licenses, an independent employee other than the person in charge is expected to accept and manage the application while the financial institution keeps track of previous Q&A in form of documentation to raise the speed and transparency of the process.
The task force for innovation in financial consumers’ rights saw the implementation of 8 of 65 tasks, including improving the interest rate system for credit card loans and lowering rates for the highest interest categories for second-tier financial institutions.
Moreover, the FSS will be creating guidelines in the second quarter of the year for telemarketers trying to sell insurance plans over the phone, which include reading the explanatory script at a certain speed while disallowing the mention of high amounts of insurance paybacks which are unlikely.
Insurance plans that may confuse consumers will be modified while a new search function allowing consumers to expand their search on an online portal to allow for a “birds’ eye view” will be implemented to include second-tier financial institutions.
For innovation in HR and corporate culture, the task force has implemented 34 tasks out of a total 68. The executed tasks include more transparent hiring practices via blind interviews; of the remaining tasks, 29 will be carried out this year and four in 2019.
In addition, a new hotline to report any unethical or illegal behavior will be established to limit personal contact with authorities including retired executives.
H. S. Seo (hsseo@koreabizwire.com)
