'Bancassurance 25% rule' eased after 19 years

After 19 years, the so-called "25% rule," which restricts the recruitment of specific companies to insurance agencies of financial institutions that sell insurance products such as banks, credit card companies, agricultural, livestock associations, or securities companies, will be eased.

The Financial Services Commission and the Financial Supervisory Service held their first insurance reform meeting this year, presided over by Kim So-young, vice chairman of the Financial Services Commission, and decided to ease restrictions to 25% to 33% for the life insurance market and 50% to 75% for the non-life insurance market.

The financial authorities also decided to apply the preferential interest rate system when receiving insurance contract loans from the second half of this year.

Those subject to preferential interest rates are high-interest insurance product policyholders, senior citizens aged 60 or older, and non-face-to-face online loan users.