"Unintentional Insurance Sign-Ups at Cake Classes"... FSS Advises Consumer Caution

Complaints Continue over Insurance Sales at Briefings and Fairs

Surprise On-Site Inspection Conducted Last Month

"Check Agent’s Affiliation and Compare Products Directly"

Caution is advised as consumers may suffer damages from so-called “briefing·fair sales,” in which insurance products are promoted during cake-making classes or baby fairs.

The Financial Supervisory Service (FSS) announced on September 21 that it provided step-by-step precautions to help prevent the infringement of consumer rights, following a surprise on-site inspection last month in response to the ongoing stream of complaints regarding insurance product briefing·fair sales. Previously, the FSS had also issued a related consumer alert last year.

According to the FSS, complaints have included cases where, during cake-making classes, insurance products were promoted without prior notice and disadvantages—such as the possibility of principal loss due to early termination—were not properly explained. At baby fairs, there were also cases of soliciting new insurance sign-ups by disparaging existing policies, as well as failing to clearly inform consumers of unfavorable terms, such as the actual maturity of key riders.

To this end, the FSS advises that if you are solicited to sign up for insurance through briefing·fair sales, you should first verify the identity and affiliation of the insurance agent. If you have no intention of participating in briefing sales, you are encouraged to decline attendance.

Before signing up for an insurance product, do not rely solely on the agent’s explanation; thoroughly check whether your purpose for enrollment is coverage or savings, and carefully confirm the main features and coverage details. It is also recommended to directly check product information through the websites of the Korea Life Insurance Association and the General Insurance Association of Korea, among others.

The insurance application process must always be conducted by the policyholder themselves, and the duty of disclosure—the obligation to notify the company of relevant facts before contracting—should be performed honestly and accurately. During the post-signup confirmation call (“happy call”), respond strictly in accordance with what was actually explained, and if there are details that are difficult to understand, you should request a more detailed explanation.

You should also be careful not to accept money or gifts in exchange for signing up for insurance. The FSS stressed that, as both the provider and recipient may be penalized for offering or accepting special benefits in excess of 30,000 won, any offer of gifts from insurance agents should be firmly refused.

An FSS official stated, “Going forward, we will strengthen monitoring of briefing·fair sales to prevent consumer harm and establish a healthy market order,” adding, “We will respond firmly to any improper sales practices identified through ongoing surprise inspections.”

This content was produced with the assistance of AI translation services.