Next Year’s Actual Loss Insurance Premium to Increase by 10% Range... New Actual Loss Insurance Remains Frozen

[Asia Economy Reporter Oh Hyung-gil] Next year, premiums for indemnity health insurance are expected to rise by an average of over 10%.

According to the insurance industry on the 23rd, the Financial Services Commission unofficially sent each company its 'opinion' on the increase in indemnity insurance premiums the day before.

The Financial Services Commission proposed reflecting about 60% of the requested increase rate for the 'standardized indemnity insurance' sold from October 2009 to March 2017, and 80% for the 'old indemnity insurance' sold before October 2009.

If the Financial Services Commission's opinion is fully reflected, premiums will rise by the late teens in percentage for old indemnity insurance and by the low teens in percentage for standardized indemnity insurance, with some differences depending on the insurer.

The new indemnity insurance introduced in April 2017, so-called 'Good Indemnity,' reportedly requested a freeze on premiums.

However, the increase rates proposed by the Financial Services Commission fall far short of the levels desired by the industry. Last year, the 'risk loss amount' of indemnity insurance recorded 2.8 trillion won, and the 'risk loss ratio' was 133.9%.

The insurance industry had warned contract holders renewing this month that premiums could rise by more than 20% next year.

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