SEOUL, Sept. 11 (Korea Bizwire) — The financial watchdog said Tuesday it will require home shopping channels to spell out insurance and annuity products, in a move that would make it easier for consumers to understand terms and conditions of a contract.
Under the move, home shopping channels will be required to use larger text to explain terms of an insurance contract, the Financial Supervisory Service (FSS) said in a statement.
Home shopping channels will also be required to use simple and easy to comprehend words, rather than industry or legal jargon, when they sell insurance products, the FSS said.
The new guidelines will take effect in December this year, according to the statement.
Last week, FSS Gov. Yoon Suk-heun called on insurance firms to make more efforts to clarify their policy clauses, saying that consumers have a hard time understanding some of them.
Yoon made the remarks at a meeting with chief executives of insurance firms at a time when some firms are in a dispute with customers over immediate payment annuities.
Yoon said the FSS will set up a task force to encourage insurance firms to change their business practices.