Business · Companies · 43 mins ago
Korean lawyers challenge insurers’ direct lawyer referrals in driver insurance
South Korean insurers are connecting driver-insurance customers with lawyers at partner law firms after car accidents.
Previously, customers generally chose a lawyer themselves and then claimed the cost from their insurer.
The Korean Bar Association says the referral system could amount to illegal brokerage under South Korea’s Lawyers Act.
It has asked several insurers to stop selling and operating the related add-ons, and has urged the Financial Supervisory Service to review the rules.
The service emerged after a 50% customer share of lawyer fees was introduced this year to curb excessive insurance payouts.
Driver-insurance sales fell 44% from January to August compared with the same period a year earlier, and insurers say partner lawyers can lower costs for customers.
The financial regulator is monitoring the market and reviewing product structures, while taking a cautious position on the legal question.
South Korea’s Korean Bar Association says insurers’ direct referrals of partner-law-firm lawyers under driver insurance may amount to illegal referral.
The association has asked insurers to stop selling and operating the related coverage and urged financial regulators to review the system.
Insurers say the service can lower legal fees for customers and ease their out-of-pocket costs.
The dispute follows a 50% customer cost-sharing measure for lawyer fees, after which driver insurance sales fell sharply.
From January to August, non-life insurers recorded 1.61 million new driver insurance contracts, down 44% from a year earlier.
- Who
- The Korean Bar Association and non-life insurers.
- What
- Lawyers are challenging insurers’ direct referrals to partner law firms under driver insurance, saying they may be illegal referrals.
- When
- The article was published on November 11, 2026. The dispute is described as recent.
- Where
- South Korea.
- Why
- The association says the referrals may violate the Attorney-at-Law Act; insurers present them as a way to reduce customers’ legal costs and out-of-pocket burden.
Korean Bar Association
Non-life insurers
Legality
Korean Bar Association
The referral arrangement may constitute illegal brokerage under the Attorney-at-Law Act.
Non-life insurers
Not stated.
Service
Korean Bar Association
The association has urged insurers to stop selling and operating the related coverage.
Non-life insurers
Insurers offer lawyers through partner law firms when customers need legal help after a traffic accident.
Customer costs
Korean Bar Association
Not stated.
Non-life insurers
Insurers say partner lawyers may charge less than lawyers hired directly, easing customers’ cost-sharing burden.
Insurers increased lawyer-fee coverage limits, and concerns arose about inflated claims and insurance fraud.
The article says insurance payouts related to driver-insurance lawyer coverage at five major non-life insurers had risen more than fourfold in three years.
A 50% customer cost-sharing measure was introduced, and new driver-insurance contracts fell 44% year on year to 1.61 million.
Maeil Business published its report on the Korean Bar Association’s challenge to direct lawyer referrals.
- New contracts
- 1.61 million from January to August 2026
- Year-on-year change
- Down 44% in new contracts
- Customer cost-sharing
- 50% for lawyer fees
- Association
- Korean Bar Association
- Outlet
- Maeil Business