Average Real-Expense Insurance Premiums to Rise 14.2% Next Year... 'Half-Price Discount' When Switching to 4th Generation

1st-2nd Generation, Average 16% Increase
"Increase Rate Varies by Age, Gender, etc."

[Asia Economy Reporter Oh Hyung-gil] Policyholders renewing their indemnity health insurance next year in the 1st and 2nd generations will see their premiums increase by an average of 16%. For 3rd generation policyholders, the premium discount of around 9% that had been applied since last year will disappear, leading to a noticeable premium hike.

On the 31st, the Life and Non-life Insurance Associations announced that this was finalized following consultations with financial authorities regarding indemnity health insurance premiums. The average overall premium increase rate for 1st to 3rd generation indemnity insurance is approximately 14.2%.

Indemnity insurance is categorized by sales period into 1st generation (sold until September 2009), 2nd generation (sold until March 2017), 3rd generation (sold until June 2021), and 4th generation (sold from July 2021 onward).

A representative from the Non-life Insurance Association explained, "This increase rate represents the average level across all insurers for consumer guidance and is not a uniform rate applied to all policyholders. The actual increase rate applied to individual policyholders may vary depending on the type of product subscribed to, age, gender, and the loss ratio situation of each insurer."

Additionally, the insurance industry plans to actively encourage switching to the 4th generation indemnity insurance, launched in July, by offering a 50% discount on premiums for one year if 1st to 3rd generation policyholders switch to the 4th generation within six months.

This applies when switching to a product from the currently subscribed insurer, and the specific implementation schedule will be separately discussed within the insurance industry and announced later.

However, since there are differences not only in premiums but also in coverage between existing indemnity insurance and 4th generation products, it is advised to carefully consider one's medical usage and financial burden before switching.

An insurance industry official stated, "Since resolving issues such as excessive medical treatment and non-reimbursed expenses is an important measure to address the deficit of indemnity health insurance, we plan to continuously make efforts, including proposing improvement measures to government authorities, so that indemnity insurance can establish itself as a 'second health insurance'."

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