Korea National Insurance Corporation in North Korea

The Korea National Insurance Corporation in North Korea is a state-owned insurance company that plays a crucial role in the country's economy.

It was established in 1990 to provide insurance services to the North Korean people, and it has been operating under the guidance of the North Korean government ever since.

The corporation offers a range of insurance products, including life insurance, property insurance, and liability insurance.

The UK has frozen the assets of a North Korean company based in south-east London. This move was made in response to claims that the company, Korea National Insurance Corporation (KNIC), funnelled cash to Pyongyang's nuclear weapons program.

The company is registered at a property in Blackheath, and its entry on Companies House now describes KNIC as "closed" since October 6, 2016. This decision was made in line with EU sanctions imposed in July 2015.

The EU has warned that the resources generated by KNIC could contribute to North Korea's nuclear-related, ballistic missile-related, or other weapons of mass destruction-related programs. This is a serious concern, as the company had total assets of 130bn North Korean won in 2014, equivalent to £113m.

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A spokesman for HM Treasury stated that the UK has fully complied and implemented the UN sanctions regime in relation to North Korea and North Korean companies. This shows a commitment to enforcing international sanctions and preventing illicit activities.

The EU regulations also impose restrictions on a range of goods from entering or leaving North Korea and impose a travel ban and an asset freeze against people designated as engaging in or providing support for its programmes for weapons of mass destruction and ballistic missiles.

In the DPRK, insurance functions as a fundraiser for certain entities in the government, rather than indemnifying individuals or corporations for losses.

Compulsory individual insurance is deducted automatically from salaries, and is used to fund the state-run healthcare system. Individuals cannot file claims under this insurance.

There are two kinds of insurance products in North Korea: individual and enterprise insurance. Both are compulsory and are administered by KNIC.

Pricing is set without regard to individual risks and loss history, with insurance operating on a pooled basis. The state absorbs any losses or profits.

The only oversight of KNIC comes from the party, which provides mainly political supervision. There is no independent regulatory authority in DPRK overseeing KNIC’s activities.

KNIC acts mainly as an administrator, collecting premiums and disbursing payments. It fails to pay market replacement value of losses, settling claims at official government prices.

KNIC has been involved in reinsurance fraud, with European reinsurers writing policies for KNIC that then submits false claims.

The DPRK hosted a significant insurance seminar in 2010, which brought together international experts and officials from various countries.

The seminar, titled "Marine Insurance & Reinsurance: the Challenges of the Time", was held in Pyongyang from June 7 to 8, 2010. It featured papers on marine cargo insurance and other relevant topics.

The event provided a platform for participants to discuss ways to overcome the challenges in the insurance sector caused by the global financial crisis. It also facilitated international cooperation and exchange.

So Tong Myong, president of the Korea National Insurance Corporation (KNIC), played a key role in organizing the seminar. He was also the chairman of the organizing committee.

The seminar attracted a diverse group of attendees, including officials from foreign embassies and missions of international organizations in the DPRK.

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In North Korea, mobile phone insurance is mandatory for all phone purchases, but it's essentially worthless.

The insurance certificates promise repair and replacement services, but customers are still required to pay for repairs out of pocket.

The Korea National Insurance Corporation (KNIC) issues these certificates, which include standard policy information like the covered device, warranty period, and serial number.

Coverage is listed as one year from the date of purchase, during which time policyholders can theoretically have their phones repaired or exchanged at authorized provincial insurance bureaus.

To file a claim, customers must present their citizen ID and insurance certificate to their local authorized dealer.

However, a recent case illustrates the system's shortcomings. A Pyongyang resident's new phone screen broke, and he contacted his local insurance dealer for repairs.

Instead of assessing his claim, the dealer directed him to a technology exchange center where he would have to pay for repairs himself.

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The dealer cited the "external blemish" exemption, claiming that a broken screen didn't qualify as a malfunction.

The customer was forced to write a self-criticism letter and received no compensation, reflecting common experience among North Koreans.

Most citizens view the insurance system as worthless, with one source explaining that it was created "purely for appearance" – another way to extract money from citizens.

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