Implementation of Four Major Strategies Including Response to Population Structure Changes
Simplification of Underwriting for Insurance for the Chronically Ill
Coverage of Medical Expenses Related to Pregnancy and Childbirth
"The non-life insurance industry is facing an unstable environment due to low birth rates, aging population, and ongoing global economic uncertainties."
On the 3rd, Lee Byung-rae, Chairman of the Korea Non-Life Insurance Association, held a press conference commemorating his 100th day in office and stated, "It is a time to respond swiftly to the rapidly changing industrial environment and market trends, such as the shift to an inverted pyramid population structure and the advancement of digital innovation technologies including artificial intelligence (AI)."
The Non-Life Insurance Association plans to promote four core strategies this year to prepare for Korea's new economic and industrial environment: responding to demographic changes, digital innovation, establishing a sustainable guarantee system, and establishing consumer-centered services.
Lee Byung-rae, Chairman of the Korea Non-Life Insurance Association, held a press conference on the 3rd to commemorate his 100th day in office and explained the four key tasks to be pursued this year.
Regarding demographic changes, the scope of insurance products will be expanded and services improved to address the medical coverage gaps for the elderly. Regulatory relaxation will also be pursued to utilize public medical data and enable insurance companies to provide nursing, care, and housing services. Additionally, to increase the subscription rate of actual expense insurance for the elderly, the subscription age for those with pre-existing conditions will be expanded, and measures to simplify disclosure requirements will be prepared. Chairman Lee explained, "Unlike general actual expense insurance with a maximum co-payment rate of 20%, actual expense insurance for those with pre-existing conditions has a 30% co-payment rate, which often causes a burden for subscribers," adding, "We will restructure products to increase subscription rates and expand consumer benefits."
Insurance products responding to social changes such as low birth rates will also be strengthened. New coverage for pregnancy and childbirth-related medical expenses will be added to actual expense insurance, and additional premium discount products for multi-child families will be prepared. A system to suspend and resume actual expense insurance for military enlistees will also be introduced. Chairman Lee stated, "Pregnancy and childbirth insurance is a major issue in our society due to low birth rates and aging, and it requires careful consideration including government policy responses," adding, "Discussions are underway to provide coverage for the benefit portion."
A stable expansion foundation for the pet insurance market will also be established. Cooperation with the veterinary industry will support the use of animal treatment statistics and the development of new products. Support will be provided for revising the Veterinary Service Act to allow animal hospitals to view and issue medical records upon pet owners' requests.
Insurance products based on data will be developed and services enhanced. Insurance products utilizing traffic big data will be developed, and grounds for using connected car data will be established. Participation in medical MyData demonstration projects and utilization institutions by the insurance sector will be promoted to advance healthcare services. Chairman Lee said, "We are closely consulting with related organizations to combine public medical data from the National Health Insurance Service and financial and non-financial data," adding, "We will also support ways to develop insurance products by combining insurance company information with external financial data."
AI will be utilized across the entire insurance industry value chain, including subscription, underwriting, and claims, to enhance competitiveness. A joint consultative body involving authorities, the association, industry, and related organizations will be established and operated to discover AI collaboration items. The introduction of AI for accident video analysis will improve fairness in determining fault ratios, and motorcycle reviews will be expanded. Stable implementation of the 'actual expense insurance claim digitization' system, effective from October 25 this year, will also be supported.
Insurance products covering climate indices, virtual assets, and non-face-to-face financial accidents will be prepared. Insurance systems will be refined in preparation for the commercialization of autonomous vehicles. Regarding domestic ESG (environmental, social, and governance) disclosure standards related to insurance, recommendations on disclosure scope, methods, and timing will also be presented.
Efforts will be made to expand insurance consumer information accessibility. Support will be provided for building a 'non-covered insurance claim inquiry system' to manage rational medical usage, and consumer guidance will be strengthened. Sales channels will be diversified so consumers can easily subscribe to insurance through various channels.
Measures will also be taken to prevent insurance claim leakage caused by unnecessary excessive medical treatment and insurance fraud. Rationalization of coverage for representative claim leakage items such as manual therapy and non-covered injections will be promoted. Rationalization of automobile insurance compensation standards and eradication of insurance fraud will also be pursued. Chairman Lee said, "Actual expense insurance is a good system introduced to reduce the national medical expense burden, but some misuse it, causing various confusions," adding, "When the Presidential Medical Reform Special Committee is launched, a task force (TF) will be activated, and we will ensure that industry opinions are well conveyed during this process."
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