Animals That Can't Visit Hospitals Even When Sick... Will the Barrier to Pet Insurance Enrollment Lower?

4 out of 10 Pets Face Difficulty Joining Pet Insurance Due to Age Restrictions
"Pet Insurance Activation Must Proceed Alongside Animal Registration System and Standardization of Medical Items"

It has been found that 4 out of 10 pet dogs in Korea are subject to age restrictions for pet insurance. The photo is unrelated to the specific content of the article. [Image source=Pixabay]

[Asia Economy Reporter Park Hyun-joo] Although the number of elderly dogs in Korea is increasing, many cases have been reported where pet insurance enrollment is not possible due to high entry barriers. An animal rights organization official stated that for the activation of pet insurance, several systems such as animal registration and standardization of medical treatment items should be implemented together.

The pet insurance subscription rate in Korea does not exceed 1%. According to data submitted on the 4th by Ahn Byung-gil, a member of the National Assembly's Agriculture, Forestry, Livestock, and Fisheries Committee from the People Power Party, from major domestic insurance companies and the Ministry of Agriculture, Food and Rural Affairs, the pet insurance subscription rate was only 0.67% (49,766 cases) as of last year. Although it has increased compared to 2017 (0.03%, 2,781 cases), it remains at a low level.

The reason for the low pet insurance subscription rate is attributed to strict enrollment requirements. Major domestic insurance companies mainly allow initial enrollment only for companion dogs under 8 years old, but the number of elderly dogs aged 9 and above, who currently find it difficult to enroll in insurance, is increasing. The number of companion dogs aged 9 and above in Korea was ▲ 787,705 (37.7%) in 2019 ▲ 960,829 (41.4%) in 2020 ▲ 1,146,241 (41.4%) in 2021, meaning 4 out of 10 dogs fall under the pet insurance age restriction.

Chae Il-taek, policy team leader at Animal Freedom Union, said, "Although it has improved a lot recently, in the past, common diseases such as patellar luxation were not covered, or elderly dogs were not allowed to enroll," adding, "It seems that products that fully satisfy consumer needs have not been developed much." He also added, "Many pet owners are not well informed about insurance products."

Only 53.4% of mandatory-registered companion dogs are actually registered. The photo is not related to the specific content of the article. [Image source=Pixabay]

Team leader Chae viewed the standardization of medical treatment items and the companion animal registration system as key to activating pet insurance. He explained, "For insurance companies to develop good products, loss ratios and other factors must be accurately calculated," adding, "(Currently) medical treatment items are not standardized, and the companion animal registration system is not active, making individual identification difficult." He continued, "If pet insurance is not developed alongside the companion animal registration system and standardization of medical treatment items, there will be difficulties in product development," adding, "Even if developed, consumers will have no choice but to pay high prices."

In this regard, legislative amendments related to the standardization of medical treatment items are being pursued. The Ministry of Agriculture, Food and Rural Affairs announced on the 6th of last month, through the 'Major Policy Promotion Plan for Companion Animal Medical Treatment,' that it will pursue legislative amendments focusing on ▲ investigation and disclosure of medical fees ▲ standardization of medical treatment items ▲ prior posting of medical fees ▲ prior explanation of expected costs for major treatments.

However, one out of two companion dogs subject to mandatory registration remains unregistered. According to data submitted by Assemblyman Eo Ki-gu of the Democratic Party from the Ministry of Agriculture, Food and Rural Affairs, among 5,178,614 companion dogs subject to mandatory registration, 53.4%, or 2,766,250 dogs, were registered. According to the animal registration system introduced in 2014, dogs aged two months or older kept for companionship in houses, semi-houses, or other places must be registered with local governments.

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