Will the Announcement of the Real Loss Insurance Reform Plan Be Delayed Beyond This Year?

Financial Authorities Shift from "Announcement Within the Year" to "Will Coordinate with the Ministry of Welfare"
Brief Discussion on Real-World Insurance Reform Plan at the 5th Insurance Reform Meeting
Special Committee Chair Also States "Difficult to Announce Within This Month"

The reform plan for indemnity insurance, which was scheduled to be announced by the end of the year, is expected to be delayed until next year. Due to concerns that a 'half-baked' reform plan might emerge amid the aftermath of the December 3 emergency martial law and impeachment crisis, the financial authorities, who had initially planned to announce it on schedule, have changed their stance.

According to the financial sector on the 17th, the financial authorities held the 5th Insurance Reform Meeting the day before with academia, related organizations, research institutions, insurance companies, and associations in the insurance sector. It was the last meeting of the year to discuss major issues in the insurance industry. Although the indemnity insurance reform plan was also on the agenda at this meeting, discussions did not progress. An insurance industry official who attended the meeting said, "The discussion on the indemnity insurance reform plan was brief," adding, "It is uncertain whether it will be announced within this month."

The indemnity insurance reform is an issue being pursued simultaneously by the insurance reform meeting led by the financial authorities and insurance industry, and the Special Medical Reform Committee centered on the health authorities and medical community. The financial authorities have been responsible for improving the indemnity insurance system itself, while the health authorities have been pushing reforms related to non-reimbursable medical expenses, which are inseparable from the insurance reform. However, during the emergency martial law, three medical-related organizations participating in the Special Medical Reform Committee suspended their participation over the expression 'punishment of residents' in the proclamation issued at that time, causing the main meeting schedule on the health authorities’ side to come to a complete halt. The holding of the public hearing scheduled for the 19th is also uncertain. The public hearing is the final opinion-gathering process conducted by the medical and insurance industries before the announcement of the indemnity insurance reform plan.

Initially, the financial authorities intended to announce the indemnity insurance reform plan within the year regardless of the situation on the health authorities’ side. At the financial situation review meeting held on the 9th, Financial Services Commission Chairman Kim Byung-hwan stated, "We will proceed with the measures scheduled to be announced this month, including the indemnity insurance reform." However, as skeptical views poured in over the indemnity insurance reform plan excluding the non-reimbursable expense management measures, the announcement appears to have been postponed. A financial authority official said on the 16th, "The announcement of the indemnity insurance reform plan is being coordinated with the Ministry of Health and Welfare," but Noh Yeon-hong, chairman of the Special Medical Reform Committee, said that it would be difficult to announce the second medical reform plan, which includes non-reimbursable expenses and indemnity insurance restructuring, within this year, making it highly likely that the announcement will be delayed until next year.

The insurance industry expressed regret over the delay in the announcement of the long-awaited indemnity insurance reform plan. However, since it was originally difficult to separate the indemnity insurance reform plan from the non-reimbursable expense management measures, such as standardization of non-reimbursable expenses, restrictions on concurrent treatments, introduction of prior consultation systems between the Financial Services Commission and the Ministry of Health and Welfare, and establishment of a specialized indemnity insurance management organization, they are hoping for a more refined plan. An insurance industry official said, "The president who had confronted the medical community was impeached, and those involved in the emergency martial law are also under investigation, so the medical community will likely return soon," adding, "Since this has been a long-discussed issue, there should be no reason for it to drag on any longer."