South korea financial service commission (FSC) has put in place a frame work that will allow local insurance platform operators to enter insurance main stream market to expand customer access to digitized financial products.
Under the framework, the FSC will ease the current regulations to enable the internet companies to develop and sell micro insurance products, in accordance with its “sandbox” programme. The regulatory framework is aimed at temporarily lifting regulations to test run new technologies In the micro retail space.
It is expected that more platform operators will attempt to offer insurance services while traditional insurance companies will seek business partnerships with digital platforms .
The FSC believes that the entry of digital platform operators into the local insurance market will induce market competition and greater consumer choice of insurance products.