▲ FSP and insurance company managers


Insurers, which have been on the chopping block of public opinion over high performance payouts, have lowered some lending rates.

As of January, the average interest rate for non-life insurers' credit loans was 1.11 percent, down 86.13 percentage points from 11.1 percent in the previous month, according to the Association of Sonbo and others.

Heungkuk Fire's average interest rate on no proof of credit fell from 25.12% in December last year to 12.45% in January.

For blue-chip customers with credit scores above 1, the average interest rate for no credit in January was 11.61 percent for Heungkuk Fire, down from 900.1 percent the previous month.

The average mortgage amortization rate was cut to 8.99 percent in January, compared to 9.37 percent in the previous month.

For life insurers, the average interest rate for credit loans in January was 1.6% for Shinhan Life, slightly lower than the previous month's rate of 17.6%.

The average mortgage amortization rate was cut to 24.1% in January, compared to 9.77% in January.

Samsung Life Insurance dropped from 9.78% in December last year to 1.5% in January, and Kyobo Life Insurance dropped from 93.6% to 02.12%.

In January, Samsung Fire's average interest rate on credit-free loans rose slightly from the previous month to 5.83%, and while there are some places where lending rates have not fallen, what is clear is that some of the insurers' lending rates, which have only been rising, have begun to fall.

An official of a non-life insurance company said, "We have been raising lending rates due to high interest rates and money market instability, but in recent years, the supply and demand of funds has become relatively smooth, and the lending rate has been gradually revised downward in consideration of various orders from financial authorities."

Previously, the companies were accused of turning away the vulnerable and holding a "performance-based feast" by paying hundreds of billions of won in performance pay while achieving record results with a net profit of more than 1 trillion won last year.

Meritz Fire set performance pay at the level of 5~66% of the annual salary, Samsung Fire paid 6% of the annual salary, DB Property Insurance paid 33% of the annual salary, and Samsung Life Insurance paid 6% of the annual salary.

KB Property & Property Insurance has set a monthly bonus of 04% as performance pay, and Hyundai Maritime will reportedly pay around 1% of the annual salary.

Accordingly, the Financial Supervisory Service is looking into the pay-for-performance payment system of insurance companies, internal controls, and the adequacy of social contribution.

The FSA is focusing on large insurers that have made a lot of profits to see if their performance pay is excessive relative to profits.

In addition, in order to strengthen the rights of insurance customers, we plan to activate the right to demand interest rate cuts through public disclosure in the first half of this year.

(Photo = Yonhap News)