South Korea eases retrocession paperwork as reinsurers lose direct consent

Primary insurers can now obtain policyholder approval on reinsurers’ behalf.

South Korea’s Financial Services Commission said an updated standard information consent form will take effect in the insurance industry in the first quarter of 2026, allowing insurers to more easily arrange retrocession deals and transfer risk to other reinsurers.

Under the revision announced on 2 January, primary insurers will be allowed to obtain policyholder consent on behalf of reinsurers for the sharing of information needed for retrocession contracts. 

Previously, reinsurers had to seek consent directly from policyholders, a process that proved difficult in practice and slowed the use of retrocession, which is a reinsurance arrangement where a reinsurer passes on part of its risk to another reinsurer.

The new form limits the use of policyholder information by retrocessionaires strictly to retrocession transactions. The data cannot be used for other purposes such as marketing or advertising. 

If the retrocession involves an overseas reinsurer, policyholders will be able to see on the primary insurer’s website which foreign reinsurers and jurisdictions may receive their information.

Regulators said the change is intended to support wider use of retrocession, helping domestic insurers spread risk and improve the stability of claims payments. 

The updated consent form is expected to be adopted by insurers after they complete system changes within the first quarter of 2026.

The authorities also said the move could help restart the process for South Korea to obtain certified and reciprocal jurisdiction status with the US National Association of Insurance Commissioners, which would make it easier for Korean insurers and reinsurers to do business in the US reinsurance market.