Instances have emerged of a mobile app collecting consumer personal information under a name similar to the official insurance inquiry service operated by the insurance associations, which is then used for insurance sales. With confirmation that the service has passed the internal compliance review of a general insurance agency (GA), there are calls to address the regulatory gaps in insurance advertising.
According to the financial sector on September 8, a mobile app is circulating under a name similar to the official insurance inquiry service 'Naebumchajum,' which is operated by the Life Insurance Association and the Property and Casualty Insurance Association.
The app is registered as 'Naebumchajum: OOO.' While it adds phrases like 'insurance inquiry' after the official name, the main screen prominently features 'Naebumchajum,' which could mislead consumers into thinking it is the official service.
In fact, after entering personal information into the app, a GA-affiliated agent called to offer free insurance remodeling. The agent stated, 'The customer database has been transferred,' and suggested canceling existing insurance and signing up for new policies, also requesting consent for the use of personal information. When asked if they were contacted by financial authorities or the insurance association, the agent did not provide a clear answer.
The app operator has been confirmed as a GA. It has been determined that the app was released after passing the GA's internal compliance review, which concluded that using the name 'Naebumchajum' posed no issues.
Similar sales tactics are also being conducted through phone calls. Recently, cases have emerged where entities claiming to be 'Insurance Check Centers' or 'Insurance Analysis Centers' demand personal information by stating, 'You have unclaimed insurance money' or 'You qualify for a premium discount.' This method uses names that could easily be mistaken for public institutions or official insurance organizations to lure consumers into insurance sales.
The customer database obtained through this process is utilized for insurance remodeling sales. Insurance remodeling, which involves canceling existing contracts and switching to new products, may primarily focus on securing new contracts to recover costs incurred in obtaining the database. Consumers should be cautious, as canceling existing insurance could result in losses in surrender benefits or the reapplication of waiting periods and reduced coverage on new contracts.
The issue lies in the fact that if a GA indicates it has passed its internal compliance review, the association finds it difficult to filter out such advertisements in advance. The Life and Non-Life Insurance Associations stated that they have not received any related reports and have not conducted separate investigations or reviews of the app. It is challenging to verify the use of a name similar to the official service until a consumer reports it directly.
A financial sector official noted, 'Advertisements marked as having received approval from internal compliance officers lack sufficient mechanisms for external filtering unless reports are received.' They added, 'The industry faces limitations in managing all insurance agency advertisements individually.'
A representative from the financial authorities stated, 'Even if a GA has received approval from its internal compliance officer, if it mimics an official service, the mere fact of having undergone internal review does not resolve the issue.' They emphasized the need to review applicable legal grounds and discuss with the associations.
* This article has been translated by AI.
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