In addition to the recent renewal cycle, the indemnity insurance premium bills, which have risen significantly, appear one after another, and the ‘4th generation indemnity insurance’, which varies depending on the frequency of hospital use, will be launched in July.
4th generation real-life insurance, is it beneficial to change?
According to the ‘2021 Insurance Industry Business Plan’ announced by the Financial Services Commission on the 1st, the insurance industry supervision regulations were revised in the first half of this year, and a new fourth-generation real loss insurance product will be launched in July.
Among the existing real loss insurance, the former real loss insurance (first generation), which has the widest coverage and no self-pay, recorded a loss ratio of 142.2% in the first half of last year. This means that it received 1 million won in insurance premiums to customers and paid more than 1.42 million won in insurance. As the more you sell, the more you lose, so this year, insurance companies have increased the first-generation loss insurance premiums. The problem is that some consumers are hitting the’bomb’ with an increase rate of more than 300% in the process.
On the other hand, the principle of’the person who receives a lot of insurance pays more insurance premiums’ is applied to the fourth generation real-life insurance. Therefore, in theory, insurance premiums can be lowered by 10 to 70% compared to existing products. For consumers who do not have a lot of hospital use, it may be advantageous to change to a new product after July.
However, since 4G products have the highest self-pay, it may be advantageous to maintain existing insurance even if renewal insurance premiums rise for those in their 60s or older who have chronic illnesses or frequent hospital use. Even for 4th generation products, if you frequently receive non-paid medical services such as manual therapy, your premium may be increased by 100-300%.
There is no full compensation for a car accident.
From the second half of the year, the’Mineral Injury Treatment Fee Compensation System’ will be improved to solve the problem of increasing auto insurance premiums due to over-treatment. Currently, there are many over-treatments that mass-produce’fake patients’ because insurance companies pay the other party’s treatment costs in full regardless of negligence in car accidents.
For example, if the perpetrator A who has a 90% negligence rate is paid 6 million won for treatment and 500,000 won to the victim B, the current insurance company B must compensate A for 6 million won and the insurance company A must compensate B 500,000 won. . Even though B is a victim with a 10% negligence ratio, B’s insurance company suffers much more damage. However, in the future, if the rate of negligence is calculated for the treatment cost, the insurance company of A must pay 5.4 million won, which is 90% of the treatment cost of A, and the treatment cost of B, 450,000 won. In this case, A’s insurance premium will increase, so the incentive for A to undergo over-treatment will be reduced.
Small customized short-term insurance companies will also appear this year. After the enforcement of the revised insurance business law in June of this year, the Financial Services Commission decided to grant new permits for small-scale insurance companies that specialize only in certain areas such as weather, animals, and theft.
In addition, this year, various insurance recruitment regulations will be reorganized in accordance with the non-face-to-face and digital financial environment, and the insurance industry will be reorganized extensively, such as expanding risk guarantees for essential workers such as delivery riders and proxy drivers, as well as mid-term and small business owners.
Kwak Joo-hyun reporter [email protected]
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