"If You Visited a Hospital Within 2 Years, You Cannot Enroll"…Stricter Large Insurers' Real-Expense Insurance

[Asia Economy Reporter Song Seung-seop] It has been identified that major life insurance companies are operating the eligibility requirements for indemnity medical expense insurance (실손보험, Silson Insurance) in a stringent manner. Amid the life insurance industry's suspension of Silson Insurance sales, there is speculation that large companies are also effectively reluctant to sell it.

According to the industry on the 4th, Kyobo Life Insurance informs customers inquiring about Silson Insurance that if they have received hospital treatment within the past two years, they cannot subscribe. It is known that even outpatient treatment for simple colds, indigestion, or minor injuries makes subscription difficult. Hanwha Life Insurance also applies the same conditions.

Other insurers are also gradually tightening subscription conditions. The age group required to undergo expert visits and examinations is lowering from the 60s to the 50s. Samsung Fire & Marine Insurance requires that insurance payouts for surgery, hospitalization, or disability over the past two years, combined from all insurers, must not exceed 500,000 KRW to be eligible for Silson Insurance. This standard was 1,000,000 KRW until last month but has been nearly halved.

Within the industry, declarations to suspend Silson Insurance sales are increasing. Since 2011 until the end of last year, a total of seven life insurance companies have given up Silson Insurance. In March last year, Mirae Asset Life Insurance stopped sales, and recently Dongyang Life Insurance and ABL Life Insurance have also ceased sales. Silson Insurance has often incurred losses due to low sales volume and high loss ratios.

Meanwhile, from the 1st of this month, the '4th generation Silson Insurance' was introduced. The 4th generation Silson Insurance lowers premiums compared to existing insurance and charges higher premiums to those who use it frequently.

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