Stop leaking insurance money… Inauguration of the Financial Services Commission’s indemnity insurance policy consultative body

Launch of the ‘Second Health Insurance’ indemnity insurance policy council
4th generation actual loss conversion performance reflected in insurance company evaluation

Photo = Hankyung DB

A public-private policy consultative body was launched to solve the chronic deficit of medical insurance for indemnity loss, which is called the ‘second health insurance’.

The Financial Services Commission announced on the 19th that it had held a kick-off meeting with the Ministry of Strategy and Finance, the Financial Supervisory Service, the Insurance Research Institute, and the Insurance Association to establish a policy consultative body for sustainable indemnity insurance.

On this day, the financial authorities and the insurance industry decided to actively induce the conversion of 1st to 3rd generation indemnity insurance product subscribers to the 4th generation. This is to improve the structure of existing products with continuously increasing loss ratios and to prevent moral hazard for some subscribers.

The financial authorities have decided to check the status of the transition on a weekly basis so that insurance companies can actively promote the 4G transition, and reflect the performance in the RAAS. The insurance industry plans to offer a 50% discount on insurance premiums to subscribers who convert until June of this year. In addition, an online conversion system will be established.

In addition, the financial authorities plan to form a working-level consultative body with the insurance industry and related institutions from the end of this month to discover and discuss specific system improvement tasks.

The tasks discussed by the working-level council are △Improvement of product structure to ensure sustainability of indemnity insurance △Preparation of non-indemnity management plan and consultation with related ministries △Resolving consumer inconvenience such as simplification of indemnity claims and improvement of the self-pay upper limit △Prevention of insurance fraud to prevent insurance money leakage is a way to strengthen it.

An FSC official said, “Based on the discussion of the working-level council, we will continue to consult with relevant ministries and consider ways to lower the burden of medical expenses and insurance premiums for the public.”

Reporter Kim Soo-hyun at [email protected]

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