"Cataract Surgeries Surge Only in Korea, Fueling Real-Expense Insurance Insolvency"

[Asia Economy Reporter Changhwan Lee] It has been revealed that the number of cataract surgeries in South Korea is increasing at the fastest rate among major countries worldwide. This surge in cataract surgeries is analyzed to be accelerating the deterioration of indemnity health insurance (실손보험), often referred to as the second health insurance.

According to the ‘Overseas Status of Cataract Surgery’ research report by the Life Insurance Association on the 11th, as of 2018, South Korea recorded 11,469 cataract surgeries per one million people, ranking third among six major OECD (Organization for Economic Cooperation and Development) countries.

Compared to the surveyed countries?United Kingdom, France, Germany, Australia, and Japan?South Korea showed a very high growth rate in the number of surgeries. From 2012 to 2018, South Korea’s increase rate in cataract surgeries per one million people was 36.8%, the highest, followed by the UK at 24.4%, Japan at 23.7%, France at 20%, Australia at 11.7%, and Germany at 8.8%.

The report emphasized, "Even when compared to global trends, it was confirmed that cataract surgeries in South Korea are increasing at a very rapid pace."

The increase in cataract surgeries is a natural phenomenon as society ages. However, in South Korea, the rapid increase in surgeries among people in their 40s and 50s?age groups with low population growth?is pointed out as a problem.

In 2018, among all cataract surgeries in South Korea, those aged 60 and above accounted for approximately 78.4%, those in their 50s accounted for 16.9%, and those in their 40s accounted for 4%.

On the other hand, the average annual growth rate of surgeries was higher among middle-aged groups: 18.1% for those in their 50s, 10.6% for those in their 40s, and 7.8% for those in their 60s. In contrast, Japan, one of the comparison countries, showed a different situation, with 65 and older accounting for 89% of all cataract patients.

The Life Insurance Association pointed out that there is social concern that domestic hospitals are performing many unnecessary cataract surgeries for profit, which is related to the peculiar increase in cataract surgeries among middle-aged groups. Excessive cataract surgeries and physical therapy are identified as major causes of deficits and deterioration in domestic indemnity insurance.

According to the Korea Insurance Research Institute, the proportion of cataract surgery costs in total indemnity insurance claims for non-life insurance increased 4.8 times from 1.4% in 2016 to 6.8% in 2020 over four years. The indemnity insurance payments for cataract surgeries rapidly grew from 77.9 billion KRW in 2016 to an estimated over 1 trillion KRW last year.

An industry insider explained, "As cataract surgery has become one of the main sources of income for ophthalmology hospitals, illegal brokers are rampant, causing serious moral hazard," adding, "This accelerates the deterioration of indemnity insurance, ultimately leading to higher premiums and harming honest insurance subscribers."