South Korea’s financial watchdog urged insurers to enhance risk management and strengthen capital reserves as market uncertainties and declining interest rates pose challenges to the sector. Financial Supervisory Service (FSS) Governor Lee Bok-hyun told insurance executives on Wednesday that firms must maintain reasonable risk levels and boost their capital base to ensure financial stability. Authorities will support these efforts by updating regulations to streamline compliance. Lee also emphasised the importance of improving internal controls and customer protection measures, signalling a broader push for governance improvements in the insurance industry. The call comes as financial markets remain volatile, prompting regulators to reinforce safeguards across key sectors.