South Korea’s Financial Services Commission and Financial Supervisory Service have announced amendments to the Insurance Business Supervisory Regulations that would let holders of first- and second-generation indemnity health policies sold before March 2013 without renewal conditions switch only their indemnity riders to fifth-generation products while keeping main contracts intact. Consumers making the switch would receive a contract repurchase benefit equivalent to a 50% premium discount for three years. The amendments also strengthen oversight of general agency (GA) channels, actuarial assumptions, interest-rate risk and real-estate project financing. A regulatory change notice runs through the 21st, with the rules scheduled to take effect on January 1 next year after review by the Regulatory Reform Committee and approval by the Financial Services Commission. GA operational risk would be graded from 1 to 5 using indicators including incomplete-sales ratios and policy persistency rates, with results affecting Korean Insurance Capital Standard (K-ICS) calculations. Insurers would submit actuarial-assumption reports and disclose duration and duration gaps, while real-estate project-finance credit exposure would be capped at 20% of total assets. Separately, the Financial Supervisory Service issued KB Insurance two management cautions and three improvement measures over customer guidance, advertising controls and other operational weaknesses.