From now on, market entry by specialized insurance companies focusing on companion animals will be permitted. Additionally, procedures related to subscribing to and claiming companion animal insurance will be improved.
On the morning of the 16th, the Financial Services Commission announced the "Companion Animal Insurance System Improvement Plan" at an emergency economic ministers' meeting held with relevant ministries. Since last year, the government has been conducting a task force (TF) for promoting companion animal insurance activation, involving various industries, as well as related seminars.
First, the government will build the necessary infrastructure to ensure that companion animal insurance operates based on reasonable premium rates. To improve the companion animal registration system, it is considering allowing registration using biometric information (such as nose prints and iris scans), and is also reviewing and promoting the mandatory registration of companion cats.
Furthermore, the government is examining and promoting measures to mandate the issuance of supporting documents such as medical records and treatment costs when consumers request them from animal hospitals for insurance claims. Standardization of treatment items will also be steadily pursued. In particular, early standardization of 100 frequently performed treatment items (such as otitis externa, neutering surgery, conjunctivitis, etc.) is planned within this year. To facilitate smooth infrastructure development, a cooperative system will be established between the insurance industry and the veterinary industry for consultation on treatment and payment standards, statistical sharing, and claim simplification.
Through close cooperation between animal hospitals (medical services) and insurance companies (insurance services), plans are underway to enable one-stop services at a single location for insurance subscription, easy claims, companion animal health management, and registration. To this end, the range of pet insurance products available for sale at animal hospitals or pet shops will be expanded from the current short-term (under 1 year) to long-term (3 to 5 years). Additionally, a system will be established that allows hospitals to send medical records and submit insurance claims to insurance companies with a single click upon consumer request. The government will also review and promote the provision of various companion animal insurance-related services through partnerships between insurance companies and affiliated animal hospitals, pet shops, and others.
Improvements to product structures and development of new products will also be undertaken, considering the characteristics of companion animals and the needs of their owners. Currently, 11 insurance companies offer related products, but there have been criticisms that differences exist only in coverage limits and premiums without considering the characteristics of companion animals. To address this, the government plans to improve product structures to allow coverage selection ranging from general treatments to severe diseases such as cancer, and to consider launching products with narrower coverage but lower premiums. Additionally, considering the status of infrastructure development, the government will explore developing new companion animal insurance products that can be used at affordable premiums, provided that measures to prevent excessive treatment are in place.
The government also plans to allow the entry of "companion animal specialized insurance companies" based on expertise in companion animals, enabling new players to offer differentiated and diverse insurance-related products and services. Entry approval will be determined through thorough examination of requirements such as financial soundness, consumer protection measures, and the soundness and validity of business plans, while also considering the potential for substantial consumer benefit improvements, such as the ability to provide customized insurance and life-cycle health management services.
The financial authorities stated, "The Financial Services Commission and the Ministry of Agriculture, Food and Rural Affairs will continue to communicate with relevant ministries, the veterinary industry, the insurance industry, and companion animal-related industries to ensure that the tasks for improving the companion animal insurance system are effectively implemented." They added, "In particular, through strengthened collaboration not only among relevant ministries but also between the veterinary and insurance industries during this process, we will support the faithful reflection of issues that citizens find inconvenient in their daily lives into improvements in medical and insurance services."
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