[New Year's Message] Jung Ji-won, Chairman of the Korea Non-Life Insurance Association, "Efforts to Normalize Indemnity and Auto Insurance in the New Year"

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[Asia Economy Reporter Oh Hyung-gil] Jung Ji-won, chairman of the Korea Non-Life Insurance Association, identified the normalization of indemnity health insurance and automobile insurance as key tasks for the new year. He plans to establish reasonable standards for non-reimbursed items and excessive claims by patients with minor injuries.

In his New Year's address on the 31st, Chairman Jung stated, "We must improve the structural deficit factors that have persisted and consider the newly required roles of insurance in response to social and economic structural changes."

Chairman Jung evaluated, "Indemnity insurance and automobile insurance are core safety nets that protect our daily lives. However, due to some unfair excessive claims, the insurance premium burden on good-faith policyholders is increasing, raising concerns about the sustainability of the insurance system."

Regarding indemnity insurance, he said, "We need to create reasonable standards for insurance payments in cooperation with relevant ministries for problematic non-reimbursed items such as cataracts and physical therapy, which are the main causes of insurance leakage, to prevent excessive medical treatment. A social atmosphere where illegal acts related to medical institutions cannot take root must be fostered, and penalties for some illegal acts should be strengthened."

He also announced plans to discuss with the National Assembly and others the strengthening of penalties for prohibited acts under the Medical Service Act, such as patient referrals through brokers.

Chairman Jung emphasized, "Insurance leakage due to the rapidly increasing oriental medicine treatments in automobile insurance is serious. Based on the results of research projects conducted by relevant ministries on long-term prescriptions of herbal medicine regardless of symptoms, prescription periods should be reasonably adjusted. Unnecessary use of higher-level hospital rooms should be recognized only when absolutely necessary for treatment according to the patient's condition, in consultation with relevant ministries."

Furthermore, Chairman Jung expressed his commitment to actively support the digital transformation of non-life insurance companies.

He said, "I hope institutional conditions will be established to enable innovative service models that provide everything from subscription to additional services on insurers' platforms. We must actively support entry into new service markets such as customized insurance product design linked with MyData business, AI health analysis using medical data, and provision of various healthcare services."

He added that with the second year of the Financial Consumer Protection Act's enforcement next year, they will work to build consumer trust. Chairman Jung stated, "We will carefully examine whether there are any factors of incomplete sales in insurance product composition and support the prompt completion of the Financial Supervisory Service's measures to strengthen GA responsibilities, including new sanctions for violations of related laws, to prevent consumer damage caused by incomplete sales."

He urged, "We must preemptively check climate change risks related to insurance product underwriting and investment, find new areas where insurance can provide coverage such as revenue declines due to weather, and strengthen the role of insurance as a safety net. Let us prepare the market in line with the increasing demand for related products such as caregiving, dementia, and pensions in the super-aged era."

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