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FSC issues "Directions for Insurance Companies to Engage in Conclusion of Distance Insurance Contracts and Provision of Distance Insurance Services"

In response to the development of financial technology and the spread of COVID-19, the FSC on 18 November 2021 issued the "Directions for Insurance Companies to Engage in Conclusion of Distance Insurance Contracts and Provision of Distance Insurance Services" in order to provide consumers with convenient and secure non-face-to-face procedures for handling insurance purchases and insurance services, and to establish a common standard that insurers can use to handle insurance purchases and provide other insurance services online in a manner that demonstrates a balanced concern for both management of risks and safeguarding of customer interests. The Directions provide for a period for trial implementation of the system; require that insurance purchases and other insurance services can only be conducted online when the customer has given a clear expression of intent; require stronger methods for authentication of a customer's identity; require insurers to conduct follow-up checks of audiovisual recordings of interactions with customers; require insurers to establish mechanisms for cyber security and protection of personal information; define the range of business activities that are subject to the Directions; and set out dispute resolution rules.
Also, in order to enable insurers to smoothly transition into compliance with the Directions, if an insurer has already conducted these types of business activities on a trial basis prior to issuance of the Directions but its methods are not compliant with the Directions, the insurer will be allowed a six-month buffer period to make internal adjustments.
Visitor: 522   Update: 2022-01-13
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