In April, the premiums of the old medical insurance (non-loss insurance) are expected to rise by up to 19%.
According to the financial sector on the 19th, in a conference call for 2020 results announcement the previous day, Samsung Fire & Marine Insurance said, “We are raising the old indemnity insurance premium by 19%, the largest in the industry.” I will normalize the ratio).
‘Exemption loss’ is a first-generation real loss insurance product that sold out until October 2009. As of the third quarter of last year, the number of contracts reached 8.66 million.
In December of last year, the Financial Services Commission presented an opinion to reflect about 80% of the increase rate desired by insurance companies for’pretext loss’. Accordingly, in April, when the adjustment is made, premiums for insurance premiums for each insurance company are expected to rise by 15-17%.
Real-life insurance is a private insurance, but it is a’national insurance’ with 34 million individual subscribers, and the opinion of the Financial Services Commission affects the premium increase.
However, the increase rate of Samsung Fire & Marine Insurance was determined to be 2%p higher than other insurance companies. When the top four non-life insurers in 2019 raised an average of 9%, Samsung Fire & Marine Insurance fell 2%, and last year, it is interpreted that the impact was applied to an increase of 2-3%p lower than these.
The industry sees the fact that the Financial Services Commission has tolerated the Samsung Fire & Marine Insurance’s increase rate as a result of the seriousness of the loss ratio of real-life insurance. In fact, the’risk loss amount’ of real-life insurance in 2019 was 2.8 trillion won, and the’risk loss rate’ was estimated at 133.9%.
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Last year, the insurance industry argued that insurance premiums should be raised to the legal upper limit of 25% considering the risk loss rate.
Insurance premiums for “standardized loss” (until March 2017) sold after pretext loss rose 10-12% by company last month, and the premium for faithful loss insurance was frozen.