Loss ratio of ineligible medical insurance
The premiums of the old indemnity medical insurance will increase by up to 19% from April. Samsung Fire & Marine Insurance is expected to raise the industry’s largest 19%, and other insurance companies are expected to raise their premiums by 15-17%.
Samsung Fire & Marine Insurance announced on the 19th that it will increase the premiums of old injured medical insurance subscribers by 18.9% from April. An official from Samsung Fire & Marine Insurance said, “We will continue to raise premiums in the future to normalize the loss ratio (the ratio of insurance premiums to premium income).”
In principle, the rate of increase in insurance premiums is autonomous in the industry, but in fact, financial authorities have presented guidelines and the industry has accepted them. At the end of last year, the insurance industry requested a 20% increase in premiums from the Financial Services Commission, and the Financial Services Commission is reported to have accepted an 80% increase in the rate of increase requested by the industry. Accordingly, other major insurers are expected to increase their premiums for excuses by 15-17%.
The pretext non-life insurance went out of print after 8.7 million cases were sold until September 2009. Since then, it has been followed by standardized real loss insurance and new real loss insurance (since April 2017). Standardized loss insurance premiums, which came out after real loss insurance, rose 10 to 12 percent by company last month, and new loss insurance was frozen.
The reason why the financial authorities tolerated a 20% increase in insurance premiums to Samsung Fire & Marine Insurance is because the loss ratio of real-life insurance is serious. In 2019, the’risk loss amount’ of real-life insurance was 2.8 trillion won, and the’risk loss rate’ recorded 133.9%.
An official in the insurance industry said, “As the loss ratio of non-life insurance is severe due to the increase in medical shopping people, it is inevitable to increase the premium by around 20%.”
However, members of non-life insurance, who are forced to pay the increased premiums immediately, are complaining. One subscriber said, “Should we filter out medical shopping people, why should the prudent subscribers bear the near 20% increase?”
Reporter Min Jae-yong [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
