KIDI Develops Management Indicators for Over-treatment of Minor Car Accident Injuries

Kangho, President of the Korea Insurance Development Institute

[Asia Economy Reporter Oh Hyung-gil] The Korea Insurance Development Institute announced on the 1st that it will estimate the scale of excessive medical treatment costs for minor injury patients, which is cited as a cause of the deterioration of automobile insurance loss ratios, and develop indicators to manage excessive medical treatment.

Kang Ho, President of the Korea Insurance Development Institute, announced the '2021 Business Plan' on the same day, stating, "We will actively support strengthening management of automobile insurance and indemnity medical insurance, which are representative social safety nets, this year as well."

Regarding automobile insurance, the institute plans to provide occupant injury risk analysis reports to contribute to fostering a culture of appropriate insurance claim and payment in minor accidents and to promote public discussion on standard treatment guidelines for minor accidents.

Additionally, as a proactive response to changes in the repair fee system, it plans to support appropriate insurance payments. It will promptly present standards for calculating work hours, seek solutions to legal amendments related to painting fees and structural problems in the paint market, and support reasonable insurance payment calculations by presenting appropriate acceptance criteria for painting fees.

Regarding indemnity medical insurance, the institute plans to actively support the restructuring of product systems through rate calculation and product plan preparation for the launch of the 4th generation indemnity insurance in July.

To introduce a premium differentiation system based on non-reimbursed medical service usage and improve the loss ratio of indemnity medical insurance, it will build a statistics-based system for non-reimbursed services and focus on supporting product and system improvements and strengthening management of non-reimbursed services.

Furthermore, the institute plans to develop a risk assessment model capable of predicting damage scale from infectious diseases such as COVID-19 and promote the development of infectious disease response insurance products, including business interruption insurance. It will also support new risk analysis and new product development for fintech-integrated automobile insurance, electric vehicles, autonomous vehicles, and Personal Mobility (PM) devices.

This content was produced with the assistance of AI translation services.