The Financial Services Commission presents’opinions’ to the industry… Standardized loss 10-12%, excuse loss 15-17%
In the next year, the insurance premiums for real-loss medical insurance (real-loss insurance) will increase by 15-17% for the old real-life insurance and 10-12% for the’standard Japanese-style non-life insurance’.
However, the new real-life insurance, introduced in 2017, is expected to be frozen.
According to the insurance industry on the 23rd, the previous day, the Financial Services Commission unofficially delivered a’opinion’ to the industry on the increase rate of insurance premiums required by the industry.
The Financial Services Commission proposed a plan to reflect 60% of the increase rate requested by each company for standardized loss products sold from October 2009 to March 2017, and 80% for products sold before October 2009. Presented.
Faithful loss, so-called’good loss’, is reportedly requested to freeze insurance premiums.
As it is, there are differences between insurance companies, but premiums rise at a rate of 15-17% for pretext non-life insurance and 10-12% for standardized real-life insurance.
Overall, the average increase rate is 10-11%.
This is half of the average 21% increase requested by the industry.
The FSC’s external position is that the rate of premium increase is the autonomy of the industry, but the opinion of the FSC served as a guide for the annual increase rate.
Last year, the’risk loss’ of real-life insurance was 2.8 trillion won and the’risk loss rate’ recorded 133.9%.
The amount of risk loss refers to the amount of insurance premium paid by the contractor minus the amount of insurance payments from the’risk insurance premium’ excluding business operation expenses.
The risk loss rate refers to the ratio of insurance premiums to risk insurance premiums.
The insurance industry predicts that the risk loss rate will exceed 130% this year following last year, as a trend until the third quarter, and argues that premiums must be raised to the upper limit of the legal increase rate (25%) in order to meet the profitability.
Earlier this month, the insurance industry announced in a notice sent to policyholders ahead of the new year’s real-life insurance renewal that the premium could rise by up to 20% next year.
However, the authorities are negative in the rapid rise of the “national insurance” type of real loss insurance, with 34 million subscribers (excluding group contractors).
Last year, the insurance industry wanted a 20% or more increase in pretext and standardized losses, but the actual increase rate was only 9%, and a discount was applied to faithful losses.
◇ Introducing premium premiums in July next year… “Limits to controlling medical expenses”
The authorities also do not deny the need to improve the deficit structure of real-life insurance.
The Financial Services Commission announced earlier this month that it will introduce a fourth-generation real-life insurance policy that applies premium discounts and premiums in July next year.
It is a structure that increases insurance premiums for subscribers who frequently use unpaid treatments such as manual therapy or vitamin injections, and lowers insurance premiums to subscribers who do not have a claim or who have a small amount.
According to the Financial Services Commission, the premium for the fourth-generation real loss insurance is currently 50% lower than standardized loss and 70% lower than pretext.
This gap will widen further with premium increases next year.
However, 4G real-life insurance is applied from subscribers in July next year, so the cost control effect of all real-life insurance is limited.
Although the rate of increase is extremely insufficient in the insurance industry, subscribers who accept the double-digit increase rate are also inevitably dissatisfied.
In particular, the majority of subscribers who rarely claim or claim a small amount of insurance each year are again contemplating maintaining insurance.
According to the Financial Services Commission, as of 2018, about 66% of all subscribers did not claim insurance at all.
There is also a growing demand for medical treatment without health insurance, that is, countermeasures against the explosion of unpaid medical care.
An official in the insurance industry predicted, “Unless appropriate insurance premium increases are followed when unpaid medical expenses are not controlled, massive losses will be inevitable next year,” and “Insurance companies that stop selling indemnity insurance or restrict subscriptions may increase.”
In a recently published report, Seong-hee Chung, a research fellow at the Insurance Research Institute, said, “Even if the product structure reorganization promotes the continuity of indemnity insurance, it is obvious that the effect will be significantly reduced if non-payment management is not properly performed.” Edo pointed out that the key is to manage the total amount of medical expenses through non-payment management.”
/yunhap news