100-200% increase depending on the renewal cycle
Distributing “how much to raise” subscribers
Kim Mo (54), an employee who signed up for real-loss medical insurance in 2008, paid the mid-30,000 won premium for insurance until this month. However, I recently received a notice from the insurance company that the renewal premium has risen to 70,000 won. It is an increase rate of over 100%. Mr. Kim said, “I didn’t see much of the insurance benefits because I didn’t have much to go to the hospital, but the coverage was so good that I was keeping it. Even if the premiums are raised, how much should the line be followed?” he raised his voice.
With 38 million subscribers, consumers are worrying about the increase in insurance premiums for real-life insurance, also known as’second health insurance’. The insurance companies that sold them are also in the position that they have no choice but to raise their premiums because the more they sell real-life insurance, the more they are sold.
According to the insurance industry on the 2nd, non-life insurers decided to increase the premiums of prestigious non-life insurance by 17.5% to 19.5% from April and began sending notices to subscribers subject to renewal.
Ineligible loss insurance is divided into three categories:’exclusive non-life insurance’ sold before October 2009,’standard non-life insurance’ sold until March 2017, and’faithful non-life insurance’ sold from April 2017. Exemptive non-life insurance has a large coverage and no co-payment. Instead, insurance premiums are higher, and the more the latest products, the lower the insurance premium and the higher the co-payment ratio.
This year’s premium increase rate is particularly high compared to standardized loss (in the early 10% range) and new loss insurance (freeze) due to the difference in loss ratio. The loss ratio of pretext non-life insurance was 142.2% in the first half of last year. This means that the insurance company received 1 million won as an insurance premium and paid 1422,000 won as insurance. The standardized loss loss ratio is 132.2%, and the good loss loss ratio is 105.2%.
The reason that Kim’s real-life insurance increase rate exceeded 100% is because the renewal period was 5 years, and the rate of increase for the last 5 years was reflected at once. Excluding 2018, the premium non-life insurance increased by 10% in 2017 and 2019, and an average of 9.9% last year. In addition, the rate of increase may vary further depending on the gender, age group, and past medical history. Older men are subject to a relatively higher rate of increase. It means that elderly subscribers who subscribed to pretext non-life insurance can receive an increase rate of 100% or 200% depending on the renewal cycle.
Insurance companies that have increased their premiums drastically and are buying the cause of consumers also suffer from real-life insurance, which has become an awkward complex because the more they sell, the more they are sold. Only the deficit accumulated from actual loss insurance from 2017 to last year is estimated at 6.2 trillion won. For this reason, an increasing number of insurance companies are discontinuing the sale of real-life insurance. Mirae Asset Life Insurance will also stop selling real-life insurance from March. Of the 17 life insurers that previously sold real-life insurance, only eight still sell products.
Reporter Nam Jung-hoon [email protected]
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]