Mirae Asset Life Insurance Launches First Post-Settlement Insurance Offering Refund of Remaining Funds After Payout

'From the First Day of Premium Settlement, Hospitalization Insurance'
Designated as an Innovative Financial Service under the Financial Regulation Sandbox System

Mirae Asset Life Insurance launched on the 7th a post-settlement P2P (Peer to Peer) insurance called "Hospitalization Coverage Insurance with Premium Settlement from the First Day," which gathers multiple subscribers and returns premiums at maturity based on the scale of insurance claims.

[Asia Economy Reporter Oh Hyung-gil] Mirae Asset Life Insurance launched on the 7th a "post-settlement P2P (Peer to Peer)" insurance called "Hospitalization Coverage Insurance from the First Day of Premium Settlement," which refunds the remaining premiums after paying insurance benefits.

The post-settlement P2P insurance is the first life insurance product by Mirae Asset Life Insurance to be designated as an innovative financial service under the Financial Regulatory Sandbox system by the Financial Services Commission.

This product is a health insurance with a 6-month term that covers hospitalization expenses. Regardless of illness or accident, it guarantees hospitalization expenses of 30,000 KRW per day from the first day of hospitalization up to a maximum of 120 days. If hospitalized in a tertiary general hospital such as a university hospital, it pays up to 60,000 KRW per day. If hospitalized for another illness, hospitalization expenses are paid again.

It is available for subscription from ages 15 to 55, and the premium for males is in the 4,000 KRW range at age 40 and in the 6,000 KRW range at age 50.

The most distinctive feature, different from existing insurance, is that the premium is post-settled and refunded according to the insurance benefit expenditures.

Currently, non-dividend insurance attributes 100% of the profit margin, which is the difference between the premiums paid by customers and the insurance benefits paid by the company, to shareholder equity. In contrast, this product returns more than 90% of the profit margin to the subscribers rather than the shareholders.

For example, for a 30-year-old male, out of a monthly premium of 4,000 KRW, 3,600 KRW is the risk coverage premium. If 10 customers subscribe, the insurer obtains a total risk coverage premium of 216,000 KRW. If only 60,000 KRW is paid to subscribers as hospitalization insurance benefits, more than 90% of the remaining 156,000 KRW is divided and refunded to the customers.

The healthier the subscribers are, the lower the total insurance benefits paid, resulting in larger refunds, which also encourages subscribers to make efforts to prevent accidents.

The post-settlement P2P product will be exclusively sold by Mirae Asset Life Insurance for the next year.

Ham Man-duk, Vice Chairman of Mirae Asset Life Insurance, introduced, "We launched an intuitive and affordable P2P-type health insurance by combining the mutual insurance structure, which is active in advanced insurance markets, with mobile fintech technology. We aim to provide consumers with a novel experience where premiums decrease based on health management efforts and to enhance the transparency of insurance products, thereby improving the social perception of insurance."