Review of mandatory submission of medical certificate when the normal treatment period is exceeded
Expanding risk guarantee for the elderly and riders… Self-driving car insurance development
The insurance company’s’one company, one license’ was eased and the platform operator’s insurance agency allowed
The government is promoting the improvement of the current insurance system, in which the government has to pay the full cost of treatment for the other party with a higher negligence rate in case of a car accident.
In addition, the insurance company’s’one company, one license’ policy is relaxed, and insurance solicitation through video calls and artificial intelligence (AI) is also allowed.
On the 1st, the Financial Services Commission issued a’policy direction for trust and innovation in the insurance industry’ containing these key tasks.
The Financial Services Commission plans to specify detailed plans through research services, debates and public hearings.
◇ “Prevent excessive medical treatment by improving the ordinary medical treatment system for car accidents”
The current standard terms and conditions of automobile insurance require that the other party’s treatment costs be paid in full regardless of negligence in the event of an accident.
The insurance company of the victim with 10% negligence should be fully compensated for the treatment cost of the perpetrator with 90% negligence.
The Financial Services Commission estimates that this will incur an annual excess of 540 billion won (about 23,000 won per contractor).
This amounts to 18% of the insurance payment (3 trillion won) for car accident treatment expenses.
Last year, the insurance premium paid per person for minor injuries (injury grades 12-14) was 1.79 million won, a 42% increase from 1.26 million won in 2016, while the treatment cost for severely injured patients decreased by 3.3%.
The Financial Services Commission said, “After collecting opinions such as a public hearing, we will consider how to treat the negligence portion of the treatment expenses for ordinary patients as insurance for personal accidents.”
In the same way that the current cost of vehicle damage is paid according to the negligence rate, the treatment cost for minor injuries should be shared as much as the negligence rate.
For example, suppose a car accident occurred in which drivers A and B were at fault. If A’s treatment cost is 6 million won and B’s treatment cost is 500,000 won, the insurance company of B currently compensates A with 6 million won, and the insurance company of A compensates B with 500,000 won.
On the other hand, if it is changed to pay according to the negligence ratio, B only needs to pay 600,000 won, 10% of A’s 6 million won, and A’s insurance company pays 5.4 million won, 90% of A’s treatment costs.
The Financial Services Commission is considering a method of reimbursing the patient’s negligence after pre-compensating the entire treatment cost from the other insurance company so that the patient’s right to prompt treatment can be guaranteed.
In addition, it was decided to review a plan to make it mandatory to submit a medical institution’s medical certificate if a minor patient undergoes treatment beyond the normal treatment period.
◇ Expanding risk guarantees for the elderly and riders… Autonomous vehicle insurance development
In addition, the Financial Services Commission operates the’Insurance Industry Private Safety Net Reinforcement Task Force’ (TF), which discusses ways to expand risk guarantees for vulnerable groups such as the elderly and delivery workers.
The TF is also planning to review a public-private partnership insurance system that guarantees damage to small businesses due to natural disasters and infectious diseases.
In addition, the company plans to expand the insurance safety net by promoting the development of insurance products for personal self-driving cars, eliminating blind spots for coverage, and raising the compensation limit for accidents related to electronic financial transactions.
Regarding indemnity medical insurance, it will support the settlement of the 4th generation ineligible medical insurance product to be released in July.
The fourth-generation real-life insurance has a structure where insurance premiums are discounted or increased as much as it is used like auto insurance.
In a preliminary briefing, Dae-young Kwon, head of the Financial Industry Bureau of the Financial Services Commission, said, “The insurance company is responsible for the wrong product design.” It is recommended to increase only about 30-40%.”
However, “As of 2019, about 2.5 trillion won in insurance companies are enduring a deficit, and some consumers’ medical excesses cannot be ignored. Therefore, the government is making its best efforts to launch the 4th generation indemnity insurance well and settle this as a proper product. I will do it all,” he said.
◇ ‘1 company 1 license’ eased… Online platform operators also allow insurance agencies
In addition, the Financial Services Commission is promoting the flexibility of the’one company, one license’ policy that allows only one life insurance company and one non-life insurance company for each affiliate and financial group.
Even within the same group, we are considering cases such as Japan and Australia where multiple insurance companies compete with specialized business strategies for each customer, product, and channel.
Until now, only when the sales channels were separated online and offline, such as Kyobo Life Insurance and Kyobo Life Planet, multiple licenses were granted.
During the first half of the year, the Financial Services Commission established detailed standards for policy flexibility through research services.
In addition, the Financial Services Commission plans to actively work on new licenses for small-term insurance companies and additional licenses for digital insurance companies.
When the revised insurance business law goes into effect in June, a’mini insurance company’ can be established that handles weather, animals, theft, diseases, and injuries with a capital of 2 billion won.
Digital insurance companies currently include Kyobo Life Planet and Carrot Insurance, and Kakao Pay is under examination for preliminary licensing.
Best practices and consumer protection devices that businesses must follow when selling and advertising insurance products through online platforms will also be prepared in the first half of the year.
In addition, platform operators such as my data (personal credit information management business) and electronic financial companies have improved the entry requirements so that they can register as an insurance agency, and more than 10% of the agency’s executives and employees are required to maintain the qualifications for the platform, which is not suitable for the platform. Some regulations are planned to be improved.
The Financial Services Commission announced that it will support the activation of innovative products such as customized insurance (UBI), which differentiates insurance premiums according to usage based on big data, and P2P insurance, which refunds reserves based on performance for groups that are guaranteed the same risk.
◇ Video call insurance application allowed… Expansion of mobile use
In terms of insurance sales, regulations will be reorganized to promote non-face-to-face recruitment.
Originally, the designer had to meet the customer more than once, but if safety devices such as explaining, recording and checking important matters by phone are in place, the supervisory regulation will be revised in the direction of exempting the obligation.
In addition, it allows insurance recruitment through video calls, etc., and allows AI voice bots to fulfill the duty of explaining the phone instead of humans.
A hybrid recruitment method, such as mobile phone signing and confirmation of contract content while soliciting products over the phone, is also allowed.
Now, when customers sign up for insurance over the phone, they need to listen to the standard product description script for about 20 minutes, and we plan to consider making it possible to replace it with mobile.
It also plans to allow insurance companies to own my data providers as subsidiaries, and to allow them to use health, assets, diet management, and nursing services on the insurance platform.
In addition, he added that he will continue to consult with relevant ministries so that insurance rights can utilize medical information held by the National Health Insurance Corporation and the Health Insurance Review and Assessment Service in the form of pseudonym information.
It will allow insurance companies to establish digital healthcare startups as subsidiaries, and promote measures to expand the range of health management services of insurance companies and the price of health management devices that can be provided.
The financial authorities will conduct on-site inspections for major sellers of foreign currency insurance products that are likely to sell incompletely and are concerned about consumer damage early next month.
For the independent insurance agency (GA), to alleviate the side effect of limiting the sales opportunities of other agents belonging to the GA due to illegal acts of some executives and staff members and planners, the introduction of the’business suspension replacement penalty’ system is promoted.
The Financial Services Commission also announced that it will endeavor to pass a bill for computerizing real-loss insurance claims in the National Assembly, and to upgrade the system so that insurance payments can be requested directly from the hidden insurance payment inquiry system.
Sanctions such as fines for unfair damage assessment and procedure violations will be newly established, the establishment of an internal medical advisory committee is mandatory for insurance companies, and the reduction of insurance funds that abused medical advice will be suppressed by revitalizing advisory services to third medical institutions.
In the second half of the year, ESG management will be promoted by including environmental, social, and governance (ESG) management and investment detailed evaluation in the management status evaluation of insurance companies.
We will also promote reorganization of the compensation system so that management performance compensation can be paid from a long-term perspective.
/yunhap news