The financial authorities have begun a field inspection to examine whether insurance payments are being properly made to existing policyholders of MG Non-Life Insurance, whose sales, including new insurance contracts, have been partially suspended. The MG Non-Life Insurance union, which is opposing the financial authorities' business suspension and the establishment of a bridge insurance company, plans to continue its opposition through employee briefings and a general strike vote this week.
According to the financial authorities and the financial sector on the 18th, the Financial Supervisory Service and the Korea Deposit Insurance Corporation have deployed over 70 personnel to conduct field inspections at the headquarters of MG Non-Life Insurance in Yeoksam-dong, Seoul, and at key branches and compensation centers across the region. This field inspection aims to ensure that the system operates effectively without causing inconvenience to policyholders before the transfer of contracts, and it is expected to last about a month.
The financial authorities explained that this inspection is not intended for the purpose of sanctioning any violations by MG Non-Life Insurance or for the due diligence related to the future transfer of MG Non-Life Insurance contracts. Moving forward, the key concern in establishing the MG Non-Life Insurance bridge company and the transfer process is the union's opposition.
The Financial Services Commission announced plans to recruit essential personnel from MG Non-Life Insurance to manage the insurance contracts transferred from MG Non-Life Insurance stably. However, the industry expects that most of the personnel, except for just over 10% of the 521 employees, will be subject to restructuring.
The union is currently not planning to obstruct the financial authorities' field inspections, but it plans to determine its future response direction and whether to proceed with a general strike through employee briefings and operating committee meetings next week. If a general strike is decided, there could be disruptions in the maintenance and management of contracts, such as the payment of insurance benefits, and the operations of computer systems or preparations for contract transfers may not proceed smoothly.
On the 14th, the financial authorities officially began preparations for the establishment of a bridge insurance company and the first contract transfer, starting with the suspension of new sales by MG Non-Life Insurance. The Financial Services Commission, the FSS, and the Korea Deposit Insurance Corporation are operating emergency plans to secure the continuity of MG Non-Life Insurance's operations, and by the end of this month, they plan to hold the first 'joint management council' among non-life insurance companies, with the aim of completing the first transfer to the bridge insurance company in the second to third quarters.