Delayed payments hit USD1.35 bn in 5 years

South Korea's delayed insurance payments reached a combined KRW1.45 trillion from 2010 to 2014, with life insurers taking up the bulk of the amount, data released by the Financial Supervisor Service showed.

Based on the data, total delayed payments of the country's life insurers for the five-year period reached KRW1.3 trillion (USD1.2bn) while non-life insurance firms accounted for KRW150 billion (USD138m).

South Korea’s insurance regulations require that insurance firms pay within three days when a file claim is filed, or within 10 days for cases that need investigation. A South Korean lawmaker has urged the Financial Supervisory Service to immediately find effective solution on the reported delayed insurance payments to policyholders, saying policyholders suffer financial inconvenience if insurance payments are delayed.