[Practical Finance] 12 Trillion Won in Dormant Insurance Money... "Looking for Owners"

Hidden Insurance Money Totals 12.3971 Trillion Won... How to Find My Insurance Money

[Asia Economy Reporter Changhwan Lee] It has been revealed that the so-called "hidden insurance money," which remains unclaimed despite the maturity period having arrived, exceeds 12 trillion won. Insurance companies are making efforts to find the rightful owners of these dormant funds by conducting campaigns to locate hidden insurance money and even launching websites dedicated to this purpose.

According to the insurance industry on the 2nd, as of the end of August last year, the total amount of hidden (dormant) insurance money in South Korea was found to be 12.3971 trillion won. Hidden insurance money refers to refunds or insurance payments that remain unclaimed even after the expiration of the claim period under relevant laws, following the maturity or termination (cancellation) of an insurance contract.

There are various types of hidden insurance money. The most common type is the interim insurance payment, which is paid when a specific period occurs during the insurance contract term and certain conditions such as survival are met. There are also congratulatory payments given upon events like childbirth or elementary school admission, education funds for children, self-support funds, and living expenses paid at certain ages, among others.

Maturity insurance payments that remain unclaimed even after the insurance contract has matured are also considered a type of hidden insurance money. Additionally, insurance money that has been held by insurance companies or the Korea Inclusive Finance Agency because the statute of limitations was completed three years after the insurance payment event occurred, but the policyholder or others did not claim it, is also classified as hidden insurance money.

The large scale of hidden insurance money is explained by the nature of insurance products. A representative from the Life Insurance Association stated, "Unlike other financial products, insurance is mostly a long-term product, and people often forget about it after signing up," adding, "As a result, many miss the opportunity to receive insurance payments on time."

As the number of people not claiming hidden insurance money increases, the insurance industry is actively providing services to help find insurance payments. Since the end of 2017, the life insurance industry has been conducting the "Find My Hidden Insurance Money Campaign" annually in cooperation with the Ministry of the Interior and Safety.

The life insurance industry sends notification mail to all insurance consumers with hidden insurance money at their latest registered address and also provides information on death insurance payments that arise from the insured's death but remain unclaimed because heirs such as children are unaware of them.

The Life Insurance Association, together with the General Insurance Association, launched the "Find My Insurance (Zoom)" service at the end of 2017, which allows integrated inquiry of all insurance subscription details and the scale of hidden insurance money. Insurance consumers can use the "Find My Insurance (Zoom)" service to check their insurance information anytime, anywhere via the internet or mobile phone free of charge in real time (365 days a year, 24 hours a day) and easily apply for insurance payments.

The "Find My Insurance (Zoom)" service does not use personal (credit) information for any purpose other than the inquiry of the user's insurance information (such as insurance company sales), so there is no need to worry about misuse of personal (credit) information.

System improvements are also continuously being pursued. Previously, the "Find My Insurance (Zoom)" service only allowed inquiry of hidden insurance money, and claims had to be made individually through each insurance company's website or by phone after checking.

However, since November 3rd of last year, a one-stop service has been provided that allows beneficiaries to enter their payment account after confirming the insurance money and claim all hidden insurance money at once, making it easier to retrieve insurance payments.

An industry official emphasized, "We will continue to promote the protection of insurance consumers' rights and convenience not only at the insurance sales stage but also throughout all stages including contract maintenance and insurance payment."