[영문 뉴스] Sarangmoa Financial Services, participates in the Clean Contract Campaign

Busan's large GA Sarangmoa Financial Services (President Jeong Sang-ho) has decided to participate in the Clean Contract Campaign. The campaign has been underway by Insurance Journal with the aim of establishing a healthy insurance contract culture.

Sarangmoa Financial Services posted a clean contract campaign "ZERO" emblem on the first screen of its ERP on the 27th, encouraging FP and managers to establish a sound and transparent insurance culture.

The Clean Contract Campaign has been organized and executed by Insurance Journal since 2019 to root out drafting unhealthy contracts and written contracts that are prevalent in the insurance industry.

A written contract is drafted when an FP increases the commission rate or policy received from an insurer more than the original insurance premiums or redemption allowances for arbitrage gain. The written contract is usually terminated around the 25th round after 18 months of the insurer's repayment period.

Such contracts are a form of insurance fraud that tarnish the image of domestic insurance industry. Written contracts are the result of a wrong practice that must be eradicated in the insurance industry; they increase the loss rate of insurance companies and cause insurance consumers to suffer by raising premiums.

In the effort to reduce such bad practice, Insurance Journal has developed the "ASK Index," a suspected writing contract index that can look into the reality of insurance contracts with more objective standards, along with the Clean Contract Campaign, to identify problems and encourage improvements.

Meanwhile, Sarangmoa Financial Services, which decided to join the insurance journal Clean Contract Campaign, is a large GA representing Busan, which was established in 2007.

As of the first half of last year, 845 designers and the average monthly sales per person were 15.2, which is higher than the average of the GA industry. The commission per registration was about 5.8 million won, which is twice as high as the average of the industry.

The newly launched Sarangmoa Financial Services, which completed the 1,000-square-meter new building in 2018 with the aim of IPO, plans to create a steep growth curve this year with the completion of the offices in Ulsan, Jinju and Changwon waiting ahead.

"As 75 percent of the 25th maintenance rate is our goal this year, we will definitely achieve it based on proper activity, and we will spare no effort for healthy business with the Clean Contract Campaign," said Chung Sang-ho, president of Sarangmoa Financial Services.

"The Clean Contract Campaign will help the domestic insurance industry achieve internal growth, in addition to numerical growth," said Choi Duk-sang, CEO of the insurance journal. "We expect the ASK index and clean contract campaign to play a positive role in the GA industry and the insurance industry"