Insurance Companies Confirm Maximum Increase Rate of 19.6% for Actual Expense Insurance

by Lee Kwangho

Published 08 Mar.2021 15:59(KST)

Highest Level in 5 Years... Samsung Fire & Marine Insurance Ranks the Highest

Samsung Fire & Marine Insurance's elderly indemnity insurance premium was revealed to be the most expensive. (Photo by Samsung Fire & Marine Insurance)

[Asia Economy Reporter Kwangho Lee] The premium increase rate for indemnity health insurance by major domestic insurers has been finalized at a maximum of 19.6% this year. This is the highest increase rate in the past five years.

According to data submitted by the Financial Services Commission to Rep. Goyongjin of the Democratic Party on the 8th, the premium increase rates for indemnity insurance from the four companies Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance were found to average between 11.9% and 19.6%, depending on the product type.

The '1st generation' old indemnity insurance sold until September 2009 is expected to increase by 17.5% to 19.6%, while the standardized indemnity insurance sold from October 2009 to March 2017 is expected to increase by 11.9% to 13.6%. Among the four major non-life insurers, Samsung Fire & Marine Insurance had the highest increase rate for old indemnity insurance at 19.6%.

The old indemnity insurance increase rates for the three companies Samsung Life Insurance, Hanwha Life Insurance, and Kyobo Life Insurance ranged from 8% to 18.5%, while the standardized indemnity insurance ranged from 9.8% to 12%.

Among small and medium insurers, Lotte Insurance raised premiums for old indemnity and standardized indemnity insurance by 21.2% and 23.9%, respectively, showing the only '20% range' increase among insurers. This was due to a regulation under the Insurance Business Supervision Regulation (Article 7-63, Paragraph 2) that allows insurers who have signed a management improvement agreement with financial authorities to increase premiums by more than 25%.