Crystal Search Results

Results for your quick search displayed by territory. You need to log in or register to see content marked by a padlock icon.

Please make sure you view all key information in your search results before accepting a risk in the chosen territory.

Disclaimer: Crystal is provided for information purposes; it does not constitute solicitation of business and is not intended to be a substitute for appropriate professional advice. Information relating to Lloyd’s Europe Subsidiary may be subject to regulatory approval.

Lloyd's
Lloyd's Europe

South Korea Lloyd's
* Please see Authorisation for details of Lloyd's underwriters licensing status
† Please see Authorisation for details of Lloyd's Europe licensing status

Pre-placement considerations

Authorisation

Lloyd's
Insurance

Lloyd's underwriters are not licensed to write insurance in or from South Korea. However, Lloyd’s underwriters are permitted to write the following exempted classes of business on a cross-border basis outside of the country:
 
  • Export and import cargo.
  • Life
  • Marine hull (including Yacht).
  • Aviation.
  • Travel.
  • Long-term personal accident.
  • Any insurance product which three or more domestic insurance companies have refused to underwrite (each of the three insurers must complete a relevant form, supplied by the General Insurance Association of Korea, declining the business).
  • Any insurance product which the insurance regulator has approved for placement on a non-admitted basis.  This approval may be granted for cases where the insured has had difficulty in acquiring coverage from domestic insurers.
  • Any insurance product that was purchased in another country but has not expired upon the policyholder's return to South Korea.
  • Any insurance products that are not sold in South Korea. For this business, a confirmation letter stating that the particular type of insurance is not available in South Korea must be obtained from a relevant Insurance Business Association (e.g. the Korea Life Insurance Association or the General Insurance Association of Korea). 

Contact between non-admitted insurers and Korean clients must only be made on a direct basis by means of mail, telephone, video conference, fax or the internet.

Korean residents are prohibited from entering into an insurance contract with a non-admitted insurer through an insurance company, solicitor, agent or broker located in Korea.

Reinsurance

Lloyd’s underwriters are permitted to write reinsurance originating from the country on a cross-border basis only. The underwriting must take place outside of the territory.

Insurers are required to hold a minimum retention of 10% of every short-term non-life insurance contract. The requirement does not apply to motor policies, retrocession business, or to larger or unusual risks which the insurer’s risk committee agrees would not be possible to retain. The minimum retention is interpreted to mean 10% of the policy premium, not 10% of the policy limit or sum insured. 

Contact between Lloyd’s underwriters and Korean cedants must only be made by means of mail, telephone, fax, video conference or the internet. Korean insurance companies are prohibited from engaging in face-to-face meetings, including all marketing activities, with unlicensed foreign reinsurers in South Korea.

However, non-admitted reinsurers are permitted to sell reinsurance products through a locally licensed broker.

Please see the information on 'Reinsurance Best Practice' for further details.

Last updated: 01 Sep 2020

Definition of risk location

Lloyd's

A risk deemed to be a Korean risk where the insured is a Korean resident, as defined under the Foreign Exchange Transactions Act. This is an individual whose address or place of residence is within the Republic of Korea or a company whose main office is within the Republic of Korea. 

For general guidance on identifying the location of a risk please refer to the risk locator.

Last updated: 02 Feb 2021

Compulsory classes

Lloyd's

The following classes are compulsory in South Korea (this is not an exhaustive list):

  • Foreign patients' medical malpractice
  • Atomic energy risks
  • Fire and liability insurance for third party bodily injury caused by fire for certain types of buildings
  • Third party liability for spread of fire in multi-tenure buildings (for specified businesses)
  • Third party liability for gas accidents, sports and recreational facilities, gymnasiums and pleasure craft
  • Third party liability for outdoor advertising businesses
  • Third party liability for owners of dangerous dogs
  • Third party liability for firefighter and fire protection businesses
  • Compulsory Automobile Liability (CALI)
  • Personal accident insurance for students and part time assistants working in university laboratories
  • Marine pollution liability
  • Workers' compensation (state scheme)
  • Road hauliers' liability
  • Household removers' liability
  • Third party liability for space launches and satellites
  • Aviation liability including liability for commercial drone operators
  • Third party liability for schools, children's play areas and kindergartens
  • Professional indemnity for foreign insurance brokers engaged in cross-border sales
Last updated: 13 Oct 2021

Distribution channels

Coverholder business

Lloyd's
As Lloyd's is not licensed in South Korea, a Lloyd's underwriter may not grant a binding authority to a coverholder located in this territory.
Last updated: 27 Jul 2018

Intermediary regulation

Lloyd's

Korean intermediaries must not be involved in the placement of insurance with non-admitted insurers, even in circumstances in which non-admitted insurance is allowed. However, a non-admitted reinsurer is permitted to sell reinsurance products through a locally licensed broker.

Non-admitted intermediaries can only market and sell insurance products of non-admitted insurers by mail, telephone, fax or over the internet.

Last updated: 27 Jul 2018

Insurance documentation

Insurance documents

Lloyd's

Contract certainty applies to general insurance contracts either entered into by a UK regulated insurer (such as Lloyd’s underwriters) or arranged through a UK regulated broker (such as Lloyd’s brokers based in the UK).

Lloyd's has developed Quality Assurance (QA) checks to help the market comply with this requirement.

Further information on contract certainty can be found on the Market Reform website.

Last updated: 19 Oct 2020
This item is secure, you need to log in or register to view it. More detail Secure content

Language of contract

Lloyd's
The language of the contract must be Korean. However, with the agreement of the insured, commercial policies can be provided in English.
Last updated: 27 Jul 2018

Choice of law

Lloyd's
Lloyd’s is not a licensed insurer in this territory.

Lloyd’s underwriters therefore write insurance business emanating from this territory either as reinsurance or as insurance on an exempt or non-admitted basis.

A contract should include a choice of law clause and an underwriter can agree with an insured the country’s law that the choice of law clause will specify.
Last updated: 27 Jul 2018

Jurisdiction

Lloyd's
Lloyd’s is not a licensed insurer in this territory.

Lloyd’s underwriters therefore write insurance business emanating from this territory either as reinsurance or as insurance on an exempt or non-admitted basis.

A contract should include a clause specifying the jurisdiction that will apply and an underwriter can agree with an insured the jurisdiction that will be specified. Nevertheless, this designation may not be effective in the event of a dispute.
Last updated: 27 Jul 2018