A PYMNTS Company

South Korea: Discovery of life insurance rate manipulation yields millions in fines

By  |  March 21, 2013
South Korea: Discovery of life insurance rate manipulation yields millions in fines

More than $18 million in fines have officially been issued to nine life insurers in South Korea, according to reports. The nation’s Fair Trade Commission has found the insurers, which include Samsung Life Insurance, ING Life Insurance and Prudential Life Insurance, collaborated to fix commission rates. The FTC found that the companies would set the lowest-tier benefits of their insurance products for customers when they reach eligible ages or conditions. The products were variable insurance products, which means the benefits may differ based on investment returns; those lowest-tier benefits exist to ensure coverage even if investments falter. The companies were found to have fixed the prices for variable insurance products in 2001 – a practice that extended for all of the companies in 2002.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

     

    Full Content: Global Post

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.