Under the Insurance Business Act, KIDI is the only organization in Korea that accumulates industry-wide insurance statistics, produces reference rates as well as experienced Mortality tables based on industry experience data. KIDI also contributes towards the healthy growth of the Korean insurance industry by providing services that review the adequacy of premium rates and reserve levels in relation to new products and policies

KIDI provides data on reference rates such as industry Mortality/Morbidity tables, which are based on industry wide data and in-house statistical systems. This allows insurance companies to calculate adequate and reasonable rates for policy holders.

Reference rates are used to assist ratemaking and reserve calculation, which in turn contribute to setting reasonable premium rates as well as ensuring the financial soundness of insurance companies.

Reference rates for life insurance includes Mortality/Morbidity tables on death, disability, hospitalization, cancer, and other insurance related statistics. In the case of non-life insurance, reference rates are rate factors that are involved in pricing of each business sector such as auto, fire, marine, liability, long term insurance, etc. Reference rates are annually reviewed and adjusted for non-life and medical expense insurance, and in case of life insurance (and long-term non-life insurance), reviewed and adjusted every five years based on industry-wide statistics.

Upon request from insurance companies, KIDI reviews all basic documentation required in the development of new insurance products to ensure that premium rates have been set accordingly with the insurance terms offered, and also validates various calculations including premium rates and reserve levels to verify its appropriateness.

By verifying the appropriateness of premium rates set by insurance companies from a neutral standpoint, KIDI fulfills a public service role and prevents a situation where insurance companies do not meet appropriate/adequate levels of reserves, which in turn may negatively affect the financial soundness of insurance companies.

KIDI is responsible for reviewing the statistical data used to calculate the rate and data, more specifically, reasonability of Mortality and Morbidity table calculation carried out by insurance companies.

By reviewing calculations, KIDI increase the public's confidence in the insurance industry. In addition to traditional tables such as mortality and morbidity rates, KIDI offers a variety of data calculation methodologies regarding long-term care, critical illness and annuities all to assist the growth and development of new markets.

KIDI is the acting organization that is responsible for assessing the legibility of insurance policies, as required by the Insurance Business Act. This process is enacted semi-annually on both life and nonlife insurance products to assess the clarity, simplicity and brevity of insurance policy clauses to help consumers gain a better understanding of the insurance products they purchase. From 2021, in addition to insurance policy, insurance product description is also to be included in the evaluation.

KIDI provides services regarding new product development and rate-making upon request from insurance companies, or in response to new market demand resulting from the emergence of new risks. Recently, KIDI has been actively supporting the development of natural disaster insurance products in connection with the government’s natural disaster management policies, thereby strengthening the role insurance plays in the risk management industry. KIDI is also supporting the expansion of the insurance market by working with non-life insurance companies and regulatory bodies in the development of new insurance products related to children’s play facilities and private learning facilities.

Also, KIDI is supporting the implementation and operation of policy driven insurances led by the government for natural disaster coverage. Through such efforts, KIDI is not only contributing towards the development of new markets in regards to policy driven natural disaster relief insurances including crop insurance, flood-storm insurance and fishery disaster insurance, but also towards the effective management of government funds as well as the provision of financial stability to those working in farms and fisheries. KIDI is developing the Catastrophe Model, which will be used to upgrade the calculation of the risk rate for such natural disasters, support underwriting of insurers, assessment of damages, and provision of reserves. Its implementation is currently under process. Meanwhile, the Korean Insurance Industry has grown in the past with private insurance, but with the liberalization of the rate of commercial insurance in April 2016, there is an increasing demand for insurers to calculate commercial insurance rates for fire, marine, and liability insurance. Therefore, KIDI will support the calculation of the insurers’ own rate by expanding the reference rate calculation of commercial insurance.

KIDI provides insurance companies with individual and group merit-demerit class information which is calculated based on industry-wide policy and claims data, to be used as a reference in premium calculation. This information is provided to insurance companies for Auto, Hull, Marine cargo and Workers compensation insurances as well. Since all insurance companies share the same information provided by KIDI, it is promoting the fairness of rate making as well as improving the efficiency of underwriting processes.

KIDI publishes a quarterly Vehicle Value Table to be used by insurance companies as an actual cash value standard when calculating premium rates for physical damage coverage, and settling claim amounts in cases of physical loss. Also, KIDI calculates a vehicle model rating on a quarterly basis by assessing damageability and repairability of vehicles through crash impact test and insurance industry statistics. This service not only promotes the fair processing of automobile insurance underwriting and claims, but also helps insurers increase efficiency in their work flow.

KIDI contributes to the improvement of consumer rights and the sound development of the auto insurance industry by improving the auto insurance system of the policy supervisory authorities, such as the establishment of special rates for high-priced repair vehicles, contract policy improvement on car-rental payment standards.