Mirae Asset Life Selected as Innovative Finance for 'Health Insurance That Returns Premiums'

Mirae Asset Life Insurance announced on the 19th that it will launch a health insurance plan in the second half of the year that refunds premiums to policyholders through post-settlement.

[Asia Economy Reporter Oh Hyung-gil] Mirae Asset Life Insurance announced on the 19th that it will launch a health insurance product in the second half of the year that refunds premiums to policyholders through post-settlement.

The Financial Services Commission designated the "post-settlement premium health insurance" proposed by Mirae Asset Life Insurance as an innovative financial service on the same day. The post-settlement premium health insurance is similar to P2P insurance, where premiums are settled at maturity based on the occurrence of insurance claims among policyholders.

For example, if 10 customers each pay a risk premium of 100 won, the insurer earns a total income of 1,000 won. If 700 won is paid out as insurance claims, 300 won remains.

In existing insurance, the 300 won would be recorded as the insurer's profit, but this product refunds 90% of the 300 won difference, 270 won, divided among the customers.

Current regulations stipulate that 100% of the non-dividend insurance profit and loss must be treated as shareholder equity. Mirae Asset Life Insurance requested regulatory relaxation to amend this so that 90% of the risk rate profit can be transferred to consumers, and it was designated as an innovative financial service.

Oh Eun-sang, Head of Product Development at Mirae Asset Life Insurance, introduced, "This system, which integrates technology into the essence of insurance that shares and disperses risk, is expected to enhance social awareness of insurance from a consumer-centered perspective."