Ruling party advocates for additional premium when canceling insurance midway

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South Korea’s ruling party is looking to expand consumer options to allow consumers to receive an additional “premium” on top of the agreed-upon refund when they cancel their insurance policies midway. This applies only to specific products determined by financial authorities and individual insurance companies, including savings-type insurance. The measure, which expands consumer choice, is receiving attention as insurance cancellations and policy loans are on an upward trend due to the recent economic downturn.

According to a document obtained on Thursday by Maeil Business Newspaper from the office of Representative Yun Chang-hyun of the ruling People Power Party, a bill to amend the Financial Consumer Protection Act will be introduced as early as this month, and the amendment includes provisions that would allow consumers to receive additional amounts in addition to their refunds for certain products.