Elderly people and sick people benefit from existing products
If there is little hospital use, it is worth considering the transfer.
Among the 9 million subscribers of the’old-type medical insurance (first generation)’, many of those who need to renew their contracts after April are expected to increase their premiums by more than 50%. It is also said that some older people can raise their premiums by more than 100% from this year. First-generation real-life insurance is a product sold until September 2009, and generally covers 100% of the cost of treatment. The second-generation real loss insurance (standardized loss, sold from October 2009 to March 2017), which has been increased since last January, has also increased by more than 50%.
When the first-generation real-life insurance is renewed, the burden increases
According to the insurance industry on the 23rd, premiums for first-generation real-life insurance will rise 15 to 18.9% for each non-life insurance company from April this year. Although the double-digit increase rate is already inevitable, this year’s increase is not only reflected when the contract is renewed. The renewal period of first-generation real-life insurance is 3 to 5 years. During this period, the premiums increased all at once. Excluding 2018, the first-generation real-life insurance has increased by about 10% in 2017 and 2019, and an average of 9.9% last year. The cumulative increase rate over five years is 53-58%. Of course, if the renewal period is 3 years, the ascent width decreases compared to that of 5 years, but the increase rate is well over 30%. An official from a non-life insurance company said, “There is a high possibility that the premium will rise by 50% or more for those who renew the first-generation real-life insurance after April.”
The reason why the premium increase rate of first-generation real-life insurance is high is that there is no self-pay. It is difficult to prevent’medical shopping’ because almost all of the cost of hospital treatment or medicine can be received as insurance. Excessive treatment for some subscribers increases the premium burden for all subscribers.
More than 50% of second-generation real loss insurance premiums one after another
The second-generation real-life insurance premium, which has 19 million people, has increased by 10 to 12% this year. In case of 2nd generation loss, the insurance subscriber pays only 10% of the treatment cost (self-pay rate), and the rest is a product paid by the insurance company. Last year and 2019, it rose by 9% and 8%, respectively. It was frozen in 2018. In 2017, the difference between companies was large, and the increase was as high as 20%. Insurance premiums did not rise this year for the third-generation bad-loss, which is called good loss or sincere loss. The self-pay rate is 10-20% of pay (applied by national health insurance) and 20-30% of non-payment.
The government announced that it would release the fourth-generation real-life insurance in July, saying that it would solve the structural problems of real-life insurance. If you haven’t paid insurance for unpaid treatment, such as manual treatment, the next year’s premium is a 5% discount. Instead, if the unpaid insurance premium exceeds 3 million won, the premium will quadruple. This insurance is based on the analysis that very few subscribers are using medical services excessively. The self-pay rate for non-payments also increased to 30% regardless of whether or not a special contract was made.
According to the 40-year-old man’s real-life insurance premium (average of four non-life insurance companies) presented by the Financial Services Commission as an example, the first generation was 36,679 won, the second generation was 2,710 won, and the third generation was 12,184 won. The premium for the fourth generation was expected to be around 1929 won. Insurance premiums for 1st and 4th generation losses are more than 300,000 won per year.
The insurance industry was concerned that the insurance premium burden could rise significantly in the future, considering the risk loss rates of the first and second generations. Insurance companies receive insurance premiums, deduct money necessary for project expenses in advance, and pay the insurance with the remaining money (risk insurance premiums). The risk loss rate is the ratio of insurance money paid to risk insurance premiums. The first and second generation risk loss rates reach 144% and 135%, respectively. This is the background of the forecast that premiums can rise to the maximum rate of annual premium increases (25%). An official in the insurance industry said, “If insurance premiums rise like now, it is worth considering the method of transferring to a fourth-generation loss according to the frequency of hospital use. “He said.
Reporter Park Jong-seo [email protected]
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