Traditional Chinese medicine treatment costs tripled for 5 years… That’s why premiums go up

[이데일리 이지혜 기자] Although the number of traffic accidents and insurance payments accordingly decreased as the amount of travel decreased due to Corona 19, it was found that the cost of oriental medicine treatment increased significantly. Herbal medical treatment accounted for half of the total auto insurance treatment cost last year.

On the 18th, according to the data on’automobile insurance medical expenses composition’ received by the National Assembly Health and Welfare Committee and the Democratic Party member Shin Hyun-young from the Non-life Insurance Association, last year’s oriental medical treatment expenses increased by 15.8% from 2019 to KRW 1,1084 trillion. It has tripled over the past five years from 3576 billion won in 2015. In particular, it accounted for half (47.4%) of the total auto insurance medical expenses of 2.338.9 billion won last year.

Experts in the field of insurance cited the surge in oriental medicine treatment costs as abnormal treatments for minor injured patients in traffic accidents at oriental medicine clinics. In addition, if this trend continues, it is expected that this year’s auto insurance oriental medical treatment will outpace hospital medical treatment costs.

On the 18th, E-Daily TV’s Big Money Part 1’Company in Issue’ investigated the current status of the surge in oriental medical treatment costs for car insurance and the possibility of an increase in insurance premiums, and analyzed the outlook for insurance stocks and investment strategies.

Tea Insurance Herbal Medicine Expenses Increased?

-Surge in oriental medical treatment costs for minor injured patients in traffic accidents

Wouldn’t this eventually lead to loss of auto insurance for non-life insurers and an increase in insurance premiums for insurers?

-Oriental medicine hospital, long treatment period and high treatment cost for lightly injured patients

-Insurance industry “Medical care expenses for minor injuries of oriental medicine clinics increase loss of car insurance”

These days, insurance premiums are on the rise. It is unfair for good insurance subscribers, but will insurance companies’ earnings improve? What is the outlook for insurance stocks?

-Increasing premiums is a factor for improving insurers’ performance

-Profits can be improved with the loss ratio lowered by Corona 19

-Expectations to benefit from an interest rate hike still remain

18th E-Daily TV Big Money Part 1’Company in Issue’ broadcast