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

By  |  March 21, 2013

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.

 

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