Insurance Industry Extends 4th Generation Real Loss Contract Conversion Discount Benefits Until Year-End

[Asia Economy Reporter Changhwan Lee] The insurance industry is extending the 50% premium discount benefit provided when converting existing indemnity insurance to 4th generation indemnity insurance until the end of the year.

The General Insurance Association announced on the 28th that it has decided to extend the 4th generation contract conversion discount benefit, which was scheduled to end this month, for six months until the end of this year.

From January to June this year, the insurance industry has temporarily offered a special contract conversion discount benefit that provides a 50% discount on the 4th generation indemnity insurance premium (for one year) when existing indemnity insurance (1st to 3rd generation) subscribers convert to the 4th generation indemnity insurance.

This measure is explained as a response to concerns about the sustainability of indemnity insurance overall, due to the rapid increase in the loss ratio of existing products (1st to 3rd generation) exceeding 130%, caused by excessive non-reimbursable medical treatments and insurance fraud.

A representative of the General Insurance Association stated, "Due to the recent rapid inflation, the economic burden on the public has increased, and it is expected that those who convert to the 4th generation product by the end of this year will receive greater premium burden relief benefits," adding, "Existing indemnity insurance (1st to 3rd generation) subscribers should decide whether to convert to the 4th generation considering their health status and medical usage tendencies."