Insurers to revise fraud compensation policies

In what comes as a sign of relief for many, major South Korean insurance companies have announced that they will introduce reforms to compensation measures of victims of financial fraud caused by hacking or phishing scams.

Thus customers will receive payouts quickly and easily, even when it is unclear who is behind breaches of privacy that lead to losses for them. Earlier customers would have to wait till financial firms were found to be responsible for the data leak or fraud.

Hyundai Marine & Fire Insurance, Samsung Fire & Marine Insurance, and Dongbu Insurance will be some of the first to offer new insurance products in this regard, according to online sources. Smaller insurers are expected to do the same.

The change is made amid growing concerns over personal data theft. Millions of Koreans have been hit by data leaks in recent months. Customers of insurers, banks and credit card companies had personal information leaked. The financial authorities plan to make those companies, where the leaks occurred,  subscribe to the new insurance cover before others.