Big Tech's Entry into the Insurance Market and Legal Challenges: focused on sales conduct regulation

Insurance companies, insurance agents, and insurance planners strongly resist the announcement of the Korean Financial Services Commission(FSC)'s policy to allow Big Tech's insurance comparison and recommendation service. Big Tech's entry into the insurance market, which has a large customer base and customer information, may threaten existing insurance companies. However, the financial authorities allow entry in stages, as is currently the case. Suppose we design and apply an appropriate regulatory system for permitted business activities. If this is done, the existing insurance industry and Big Tech can coexist while growing the pie in the insurance market, contrary to the insurance industry's concerns. Ultimately, it is expected that the competitiveness and financial inclusiveness of the insurance market will be strengthened due to Big Tech's entry into the insurance market. The FSC stated that insurance brokerage is possible for platform operators but limited the available services to comparing and recommending insurance products that fall under the recommendation, which is step 1 of the five steps of brokerage, and linking operators. Accordingly, if the three big tech companies start the above service, it is unclear whether this corresponds to insurance brokerage and whether insurance brokerage regulations can be applied. Insurance brokerage has different characteristics from other brokerages. Even if the concept of insurance brokerage is analyzed to determine the insurance brokerage of Big Tech's insurance product comparison·recommendation services and provider connection services, it takes work to identify brokerage due to the problems inherent in the 5-step brokerage theory of the FSC. Among the two interpretation theories presented in this paper, even if it is based on the negation theory of brokerage, considering the reality of the service provided by Big Tech and the need for responsibility, the concept of insurance brokerage is widely interpreted for Big Tech, leaving room for acknowledgment of brokerage. If the requirements for appearance liability are met, Big Tech should bear brokerage liability. In the case of future regulation through revision of the law, it is a desirable direction in the legal system to include Big Tech in the insurance intermediary regulations under the Commercial Act and Insurance Business Act rather than preparing regulations in the Electronic Financial Transactions Act. Also, we need to add insurance brokerage clauses in the insurance section of the Korean Commercial Act.