The Financial Supervisory Service said Sunday that it issued a “warning” against Ergo Daum Direct, an online auto insurance company, for rigging insurance premium-related figures in an alleged bid to attract more policyholders.
Ergo Daum Direct, which is now under the wing of the France-based Axa General Insurance, was also levied fines of 50 million won ($44,600) from the financial regulator.
In 2012, the insurer sought to increase its market share by manipulating the loss ratio ― or the ratio of insurance payouts to premiums ― and selling insurance products at unfair prices, an FSS official said.
“Though Ergo Daum should have raised the insurance product prices by 5.8 percent on average in consideration of its loss ratio and financial soundness, the company instead slashed the prices by 3.1 percent,” he said.
Meanwhile, Axa Direct Korea, which took over Ergo Daum last year, is poised to launch a workforce restructuring.
(
kys@heraldcorp.com)
