One Month After Launch of '4th Generation Silson Insurance', No Popularity and High Barriers

Compared to the 3rd generation product period, it decreased by less than 30%

[Asia Economy Reporter Ki Ha-young] Since the introduction of the 4th generation real loss medical insurance, the sales volume of real loss insurance has decreased. However, there is also a forecast that the number of subscribers who want to switch to the 4th generation may increase compared to now at the end of the year and the beginning of the year, when premium hikes are expected.

According to each non-life insurance company on the 3rd, the sales volume for one month after the launch of the 4th generation real loss insurance shrank to less than half compared to the previous 3rd generation product period. Although there are differences depending on the company, compared to June, when subscribers flocked to sign up for the last 3rd generation real loss insurance, the sales volume of each company's 4th generation in the first month of launch dropped to less than 30% in just one month. Some insurance companies reported that last month's sales volume of the 4th generation real loss insurance plummeted to one-tenth of the 3rd generation in June. The conversion of existing 1st to 3rd generation subscribers is also known to be minimal.

The insurance industry speculates that consumers consider the 4th generation real loss insurance less favorable than existing products. The 4th generation real loss insurance has a higher copayment ratio for medical expenses than the 3rd generation product, and if the use of non-reimbursable services is high, the premium can be increased by up to 300%. Although the premium is about 10% cheaper, no inducement effect has appeared.

The decrease in real loss insurance sales also seems to be influenced by the passive sales approach of insurance companies. Some insurance companies have recently raised the threshold for subscribing to real loss insurance sharply in the past few months, rejecting applicants simply because they had medical experience in the last two years or the total amount of various insurance claims exceeded a certain amount. The insurance industry, which has failed to control non-reimbursable medical expenses of existing subscribers, is trying to reduce losses by selectively accepting only subscribers who are unlikely to visit hospitals as much as possible.