The ‘discounted premium for healthy bodies’ policy offers discounts to health insurance customers who meet a number of prerequisites, with the discount rate being four to five percent for men and one to two percent for women. Those on a whole life insurance program can slash their premiums by up to 14.7 percent. (Image: Kobiz Media)
SEOUL, March 21 (Korea Bizwire) – Those insured who don’t smoke or have normal blood pressure will now be able to get discounts on their premiums, as part of the government’s effort to encourage more healthy people to get on board.
The government is focused on spreading the word about existing policies of private insurance companies that healthy people can benefit from, after learning that a mere one percent of insurance customers actually take advantage of the benefits, according to a new financial report from the Financial Supervisory Service (FSS) released yesterday.
The ‘discounted premium for healthy bodies’ policy offers discounts to health insurance customers who meet a number of prerequisites, with the discount rate being four to five percent for men and one to two percent for women. Those on a whole life insurance program can slash their premiums by up to 14.7 percent.
Experts believe the required terms and conditions to qualify for the policy could apply to a significant number of people despite the fact that only a reported 1.6 percent of new insurance customers from 2014 to 2016 are on the receiving end of these benefits.
For those already on an insurance program, the prospect of getting an additional checkup in order to get discounts is off-putting.
Critics also point to the fact that insurance companies are too passive when it comes to promoting their discount policies for healthy clients.
To tackle the issue and vitalize the insurance market, the FFS is simplifying the application process and additional checkups previously required to receive discounts.
In addition, insurance companies will now have to explain to new clients about the discounts available to healthy people so that more people can enjoy the benefits, according to the FFS.
Plans to make it possible to file insurance claims on both mobile devices and through the internet are on the way as the six major insurance companies in South Korea deal with 45 percent of their claims through branch visits, according to statistics from last year.
Ashley Song (ashley@koreabizwire.com)
