The General Insurance Association of Korea (GIAK) signed a memorandum of understanding (MOU) with the Financial Supervisory Service (FSS), the National Police Agency and the Korea Road Traffic Authority (KoROAD) to eradicate auto insurance frauds and strengthen cooperation on Nov. 13.
The four organizations pledged to respond strongly and sternly to intentional traffic accidents.
The MOU strengthens their cooperation, focuses on promoting information sharing among them, strengthening their investigative capabilities, promoting education for insurance fraud prevention and expanding PR activities for damage prevention.
Regarding the background of the agreement, the organizations cited an annual increase in auto insurance frauds, including intentional traffic accidents.
Auto insurance fraud damage in Korea in 2024 reached 570.4 billion won, accounting for 49.6% of the total amount of insurance fraud damage (1.502 trillion won).
Intentional traffic accidents account for approximately 30% of the auto insurance fraud cases, increasing by 5.7% from 160 billion won in 2023 to 169.1 billion won in 2024.
Intentional traffic accidents can turn ordinary citizens into victims or perpetrators of unexpected traffic accidents, leading to an increase in auto insurance premiums and other costs which are passed on to innocent financial consumers.
Therefore, the four organizations agreed on a need for close cooperation to prevent insurance frauds caused by intentional traffic accidents.
They signed this MOU to integrate their respective expertise and further strengthen their response systems to eradicate intentional traffic accidents, which infringe on the people’s interests.
The key objectives of the MOU are to strengthen mutual cooperation to eradicate intentional traffic accidents.
These include promoting information sharing on insurance frauds, strengthening investigative capabilities, conducting education and carrying out public relations activities.
The MOU is expected to have a significant synergistic effect on eradicating auto insurance frauds by leveraging the expertise and experiences of the four organizations.
This will not only strengthen investigations but promote education and public relations activities to eradicate intentional traffic accidents.
Furthermore, it is expected to prune social costs by preventing insurance companies from losing insurance money due to insurance frauds such as intentional traffic accidents, and to prevent undue harm to innocent citizens.
Going forward, the GIAK will form a working-level consultative body with the Financial Supervisory Service (FSS), the National Police Agency and the KoROAD to draw up detailed implementation plans to ensure the effective implementation of the MOU.
Diffusion of Pedal Mis-operation Prevention Devices for Senior Drivers
The GIAK announced on Nov. 24 that it will launch the second round of the Pedal Mis-operation Prevention Device Distribution Project which was launched in collaboration with the Korea Transportation Safety Authority (TS) and the National Police Agency to support safe driving among senior drivers.
This second round is a follow-up to the first round of the free pedal mis-operation prevention device distribution project launched in April 2025 which began following the signing of an MOU among the GIAK, the National Police Agency and TS in November 2024 to promote traffic safety for senior drivers.
The project will be expanded to target more people and wider areas.
The first round of the project involved 141 elderly drivers identified a total of 71 suspected cases of pedal mis-operation linked to abnormal acceleration over a three-month period, effectively preventing such incidents.
Based on these results, the GIAK, the National Police Agency and the TS will begin recruiting participants for the second round of the project, targeting 730 elderly drivers in seven metropolitan cities nationwide, starting on Dec. 1.
“Given a persistent social anxiety surrounding abrupt acceleration accidents, the GIAK hopes this second round will set up a safer traffic environment for more people,” said Lee Byung-rhae, chairman of the GIAK.
“The Korean general insurance industry will actively pursue various traffic accident prevention initiatives in addition to this project.”
_4개 기관 업무협약.jpg)
