Life insurance executive ``biggest surprise'' Background behind Financial Services Agency's suspension order to Gibraltar

Prudential Life Insurance received an order from the Financial Services Agency to suspend operations for approximately three months. The fraud committed by sales employees was not only involved in stealing money, but also extended to ``insurance sales itself.'' Gibraltar Life Insurance was also subject to a similar punishment, and the group as a whole faces a ``thorny road'' to regaining trust.

"In the first place, there was no system to check after the fact whether the contract met the customer's wishes." A senior Financial Services Agency official spoke out about Prudential's sloppy management system.

Insurance salespeople are required by the Insurance Business Act to confirm the customer's intentions and ensure that the final contract matches the customer's intentions. However, on-site inspections by the Financial Services Agency found about 4,000 violations of obligations, such as selling variable insurance to customers who wanted whole life insurance. There were also cases in which personal information was illegally taken out for 464 customers.

Gibraltar's misguided response

Factors contributing to the proliferation of various scandals...