Loss of 2.4 trillion won in non-life insurance alone, 130% of risk loss rate for 2 consecutive years
Cataract-related insurance payments surge five times compared to 2017
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It was found that last year’s loss of nearly 3 trillion won was incurred from the insolvency medical insurance (ineligibility insurance). This is because some insurance payments such as cataracts and manual treatment have increased sharply even though hospital use has decreased due to the novel coronavirus infection (Corona 19).
According to the non-life insurance industry on the 16th, the total loss incurred by non-life insurers last year, that is, expenses such as insurance money, was tentatively counted at KRW 10. On the other hand, the risk insurance premium that can be used to pay insurance premiums after deducting business operation expenses from the insurance premiums received from subscribers amounted to only KRW 7.77 trillion, resulting in an insurer’s loss amounting to KRW 2.36 trillion. The ratio of incurred losses to risk insurance premiums was 130.5%, exceeding 130% for the second consecutive year following the worst record in 2019 (134.6%).
In the three years from 2018 to last year, the total amount of losses incurred in real-life insurance was KRW 6.1 trillion. As non-life insurance contracts account for 82% of all real-life insurance contracts, if life insurance contracts are included, it is estimated that last year’s total loss of non-life insurance in the insurance industry was about 3 trillion won, and the loss for the last three years was 7.400 billion won.
An official in the non-life insurance industry said, “With the start of Corona 19, the loss ratio temporarily decreased in the second quarter of last year, but from the third quarter, the loss ratio has turned to an upward trend again. If it gradually survives, it is feared that the loss ratio will deteriorate again.”
In particular, insurance payments for some diseases have soared. Insurance payments for cataracts alone amounted to 410.1 billion won, a four-fold increase from 2017 (88.1 billion won). Skin disease insurance premiums were paid 1287 billion won, an increase of 127%. Musculoskeletal disorders, which account for 41% of insurance payments, increased by 50.5% in three years, mainly for manual treatment.
The loss of real-life insurance has grown like a snowball, and the insurance premium burden of the contractor has recently increased. This year, Samsung Fire & Marine Insurance raised 19.6% and 13.6% of standardized real loss insurance (sold until September 2009) and standardized real loss insurance (sold until March 2017), respectively. Samsung Life Insurance raised 18.5% and 12.0%, respectively. Seniors who have reached the renewal period of 3 to 5 years have to pay the premium by more than 2 to 3 times to maintain the insurance.
As losses increased, a small insurance company that stopped selling real-life insurance came out. Mirae Asset Life Insurance has stopped selling real-life insurance in March, and currently, life insurers that do not sell real-life insurance are Laina Life, Orange Life, AIA Life, Fubon Hyundai Life, KDB Life, DGB Life, KB Life, and DB Life. Among non-life insurers, AXA (Aksa) Insurance, ACE Insurance, and AIG Insurance stopped selling.
/ Reporter Kim Hyun-jin [email protected]
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