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Both the rate of non-payment of life and non-life insurance premiums increased slightly
According to the insurance industry on the 17th, the average non-payment rate of insurance claims for life insurers (23) in the first half of last year was 0.9%, and the average non-payment rate (based on long-term insurance) for non-life insurers (16) was 1.52%. It increased by 0.05 percentage points and 0.01 percentage points respectively from the second half of last year. The rate of non-payment of insurance claims refers to the ratio of the number of rejected cases to the number of insurance claims. That means that there are many refusals to pay insurance payments.
Heungkuk Life Insurance (1.63%) showed the highest rate of non-payment of insurance benefits among life insurance companies with more than 10,000 claims per year. Heungkuk Life Insurance did not pay 228 out of a total of 13,595 insurance payments. Heungkuk Life Insurance explained that it is a “basic phenomenon due to the discontinuation of child insurance sales.” In the case of children’s insurance, it is a product that pays a relatively large amount of insurance money unless it is special, but it is explained that the average non-payment rate has risen as the sale of this insurance ceased from the second half of 2019.
After Heungkuk Life Insurance, NH Nonghyup Life Insurance (1.35%) has the highest rate of non-payment. Nonghyup Life Insurance did not pay 597 insurance payments out of 40,703 cases. Subsequently, Samsung Life Insurance recorded 1.31% and Hanwha Life Insurance recorded 1.06%.
Among non-life insurers, Hyundai Marine & Marine Corp. had the highest non-payment rate at 2.03%. It is the highest number for life insurance companies and non-life insurance companies. Hyundai Marine & Marine Corp. did not pay 13,590 cases out of 662,225 cases. Hyundai Marine & Marine Corp. said, “Because there are more injured subscribers compared to other places, there are many cases of non-payment.”
Following Hyundai Marine & Marine, Ace Insurance was 1.84%, followed by AIG Insurance 1.81%, Hanwha Insurance 1.59%, Aksa Insurance 1.51%, and Samsung Fire & Marine Insurance 1.5%.
In the’Insurance Dissatisfaction Level’ survey, Hanwha Life Insurance showed the highest at 0.77%. Insurance dissatisfaction is the rate at which a consumer cancels without maintaining insurance even after receiving the insurance claim from the insurance company. This means that the insurance payment process was unsatisfactory. AIA Life Insurance and Heungkuk Life Insurance also followed with dissatisfaction rates of 0.76% and 0.74% respectively. Among companies with less than 10,000 claims, Hana Life, KDB Life, and DGB Life had more than 1%.
Among non-life insurers, the figure was low, mostly below 0.5%, followed by MG non-life insurance and 0.43%, followed by Aksa non-life insurance and 0.22%. Among companies with less than 10,000 claims, Hana Insurance was relatively high at 0.76%.
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Due to the ambiguous duty to notify…
Most of the reasons why insurance companies do not pay insurance money are many violations of the obligation to notify. According to the terms and conditions, the insurance policy holder hid the medical history or the operation status without prior notice. If a violation of the notification obligation is confirmed, the insurance contract may be forcibly terminated instead of the insurance payment.
However, within and outside the insurance industry, consumers’ obligation to notify is always a subject of controversy. There is a lot of debate over how far the notification obligation should be. Some pointed out that there are differences between insurance companies and products, which often adversely affect consumers. Therefore, if insurance payment is rejected, it often leads to lawsuits. As of the first half of last year, the number of lawsuits related to new insurance claims by life and non-life insurance companies (based on the original lawsuit) was 3259, up 37% from the second half of 2019.
An official in the financial sector said, “Since there have been many insurance frauds that have tried to abuse the system for a few years, and thus, as a precautionary measure, the examination of insurance payments and subscription screening is difficult.” “Recently, since there is no profit from the insurance business side, The screening for general insurance payments has also been strengthened to some extent.”