Financial regulators vow measures to weed out insurance fraudsters
By Kang Seung-woo An increasing frequency in fraud by insurance salesman has spurred authorities to enforce a no-tolerance policy, sources said Sunday. Financial regulators are fine-tuning new regulations with the Justice Ministry that will allow them to revoke the license of insurance people involved in fraud and ban them from conducting business permanently. This ``one-strike-and-you’re-out’’ scheme and other sanctions will be included in the revised bill for the insurance law the Financial Supervisory Service (FSS) plans to present to lawmakers soon. In a dismal lack of foresight, the current regulations on insurance businesses provide no specific rules on the punishment of fraudulent activities, just vaguely stipulating that insurance salesmen should not commit them. ``Insurance salespeople who are punished for insurance fraud at one company can usually move to another with no problem because there is no system for sharing such information between the companies. Our plan is to weed out those without professionalism and ethics and kick them out of the industry,’
