Personal indemnity medical insurance premiums in South Korea will rise by a mean of seven.8% as deficits widen because of extreme medical remedy. Particularly, premiums for fourth-generation indemnity insurance coverage merchandise presently on sale are anticipated to surge by practically 20%.
The Normal Insurance coverage Affiliation of Korea and the Korea Life Insurance coverage Affiliation stated on Dec. 23 that the typical premium enhance for indemnity medical insurance subsequent yr has been calculated at roughly 7.8%. That is 1.2 share factors decrease than the typical annual enhance of 9% over the previous 5 years.
Particularly, premium hikes are anticipated to fluctuate by era, with first-generation plans rising by round 3%, second-generation plans by about 5%, whereas third- and fourth-generation plans are projected to leap by roughly 16% and 20%, respectively. As of the third quarter this yr, insurers’ loss ratio for indemnity insurance coverage stood at 119.3%, up from 116.6% a yr earlier, with losses totaling roughly 2.1 trillion received (roughly $1.44 billion). The overall and life insurance coverage associations defined that the premium enhance charges signify business averages and don’t apply uniformly to all policyholders.
