Korean insurers to offer premium discounts to non-smokers

Government boosts incentives for healthy people to buy insurance as part of its efforts to revitalize the market

Korean insurers to offer premium discounts to non-smokers

Insurance News

By Gabriel Olano

Non-smokers and those with normal blood pressure will be eligible for insurance premium discounts as part of the South Korean government’s efforts to convince more healthy people to get insurance.
A report from the Financial Supervisory Service (FSS) released on Monday revealed that only around 1% of insurance policyholders avail of benefits available for healthy individuals, leading the government to promote these benefits more.
For health individuals, health insurance policies could be cheaper by 4%-5% for men and 1%-2% for women. Meanwhile, whole life insurance policies’ premiums can be up to 14.7% cheaper.

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According to experts, many more people are qualified for these benefits, but only 1.6% are currently receiving them. However, the prospect of undergoing an additional medical check-up to qualify for discounts can be off-putting to most customers. Some critics also pointed out that insurance companies usually do not do enough in promoting discounts for healthy clients.
To change this, the FSS plans to make the application and check-up process simpler, and it will require insurance companies to inform new clients about the discounts available to healthy people.

In addition, the regulator is looking to make it easier for policyholders to make claims through their mobile devices or the Internet. For the top six insurers in South Korea, around 45% of claims in 2016 were made via branch visits, according to industry statistics.

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