[2020 National Audit] Financial Authorities Consider Introducing Differentiated Premium System for Real-World Medical Insurance

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[Asia Economy Reporter Ki Ha-young] Financial authorities are considering the introduction of a differentiated premium system for indemnity medical insurance.

On the 12th, the Financial Services Commission announced during the National Assembly's Political Affairs Committee audit report that it is preparing a product structure reform plan to prevent moral hazard among indemnity insurance subscribers. Measures under review include the introduction of a differentiated premium system and the expansion of the self-pay ratio to encourage appropriate medical use by subscribers.

The Financial Services Commission plans to prepare the reform plan and promote revisions to the insurance business supervision regulations and standard terms and conditions in the first half of next year. It also plans to revise the detailed rules for product disclosure to strengthen consumer guidance regarding duplicate subscriptions to indemnity insurance.

Within and outside the insurance industry, there have been consistent calls for the introduction of a differentiated premium system linked to the history of insurance claims to reduce moral hazard among subscribers who unjustly receive indemnity insurance payments.

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