Local major insurance firms have decided to freeze premiums under regulatory instruction from the Financial Supervisory Service.

Industry sources said Tuesday that life insurance firms, including Samsung Life, Kyobo Life and Hanwha Life, have dropped their stance to raise premiums on products sold to policyholders. These firms had abortively planned to raise the rates on insurance products in April, when the standard rate of interest is expected drop about 5 percent.

Major nonlife insurance firms, including Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance and Dongbu Insurance, have joined the move, scrapping plans to raise insurance rates.

The move comes after the FSS reportedly urged their executives to keep the rates affordable for the low-income earners, officials of insurance firms said.

(joowonc@heraldcorp.com)

The state regulator’s warnings are in accordance with the new Park Geun-hye administration that advocates pro-underprivileged economic policies, they said.

“The FSS said it will do as much as it can to reign in the insurance firms, so that the insurance fees don’t add to rising prices,” another insurance industry official said.

(joowonc@heraldcorp.com)