원본보기 아이콘

Competition among insurance companies to launch new products in the new year is fierce. From health insurance, where competition between life and non-life insurers was prominent last year, to annuities, dementia, and pet insurance, products equipped with new types of riders and expanded coverage are being released one after another.

According to the financial industry on January 9, Shinhan Life introduced "Shinhan Tontine Annuity Insurance" as its first new product of the year. This is the first time a tontine annuity has been launched in South Korea. Last year, the financial authorities and the insurance industry prepared for the introduction of this product through insurance reform meetings.

원본보기 아이콘

The tontine annuity is a financial product designed by 17th-century Italian banker Lorenzo de Tonti. The investment returns from the premiums paid by subscribers are distributed only to surviving members, and when a subscriber dies, their share is allocated to the remaining survivors. This product was developed in anticipation of growing demand in a super-aged society, as the longer you live, the more annuity you receive.

Shinhan Life has localized the tontine annuity for the Korean market. Even if the policyholder dies before the annuity begins, the policy has been improved so that the beneficiary can receive the larger amount between the total premiums paid and a certain percentage of the accumulated funds. If a policy with an insurance period of 20 years or more is maintained until the annuity start date, a bonus of up to 35% of the total basic premiums paid during that period is also provided at the start of the annuity.

ABL Life has launched a product that provides greater benefits to healthier customers. The "(Non-Participating) Woori WON Health Refund Insurance" pays a health refund when the policyholder reaches the refund age, based on the customer's age at enrollment, either for the total premiums paid or the premiums paid minus any benefits already received. ABL Life's unique refund method for this product earned it a nine-month exclusive use right from the Korea Life Insurance Association. This product includes 10 types of riders covering hospitalization and surgery, including for the three major diseases: cancer, cerebrovascular disease, and ischemic heart disease.

AIA Life has introduced the "(Non-Participating) AIA Global Power US Dollar Annuity Insurance," which provides a larger annuity as the value of the US dollar rises. This product is suitable for the current high exchange rate era, with the won-dollar exchange rate threatening the 1,500 won mark. It also features a "US Interest Rate-Linked Bonus" to maximize the annuity amount. Through the won conversion service, policyholders can pay premiums and receive annuities or insurance benefits in either Korean won or US dollars, without a separate currency exchange process.

KB Insurance has launched "KB Precious Pet Insurance" as a new product for the new year. This move signals its intention to actively target the pet insurance market, which has been led by Meritz Fire & Marine Insurance and DB Insurance. Unlike previous pet insurance products that combined hospitalization and outpatient medical expenses, this new product provides separate annual limits of 20 million won each for hospitalization and outpatient care-the highest level in the industry. In addition, "anti-cancer drug therapy" coverage has been newly introduced to address cancer, one of the leading causes of death for dogs and cats. This coverage provides up to 300,000 won per session, up to six times per year.

Getty Images Bank

원본보기 아이콘

Hanwha General Insurance has upgraded its flagship product, "Hanwha Signature Women's Health Insurance," to version 4.0 for the new year. The coverage has been expanded to include legal and financial burdens related to domestic violence and sexual assault. Maternity-related coverage has also been extended to the pregnancy stage, providing a one-time pregnancy support payment of 500,000 won upon pregnancy. The number of infertility treatment benefits has been increased, supporting up to eight procedures in total for artificial insemination and in vitro fertilization. Additional benefits include increased childbirth support payments for multiple children, postpartum care center costs, and childcare expenses during hospitalization.

Hyundai Marine & Fire Insurance has launched "Care Double Cancer & Dementia Insurance," which provides integrated coverage for cancer and dementia-major diseases in a super-aged society. If the policyholder is first diagnosed with cancer, 100% of the cancer diagnosis benefit is paid, and if later diagnosed with severe dementia, an additional 200% of the severe dementia diagnosis benefit is provided. Conversely, if severe dementia is diagnosed first, 100% of the severe dementia diagnosis benefit is paid, and if cancer is diagnosed later, 200% of the cancer diagnosis benefit is provided. The product is designed to ensure sufficient coverage even if both diseases occur.