SEOUL, Sept. 18 (Korea Bizwire) — Following an announcement from the government that animal registration policy will be subject to stricter implementation, experts are anticipating an increase in demand for pet insurance.
The Ministry of Agriculture, Food and Rural Affairs announced on Tuesday that it will come up with stricter animal-related regulations to ensure implementation of the animal registration system, and require all pet owners to register their pets upon adoption.
Stricter animal registration procedures are leading to more interest in pet insurance, which had previously been neglected by pet owners despite the financial burden stemming from medical expenses and the typical costs associated with having a pet.
Compared to the fact that the subscription rate for pet insurance is 20 percent and 10 percent in the U.K. and the United States, respectively, the subscription rate in South Korea is no more than 0.1 percent, leading insurance companies to remain passive about offering pet insurance products.
A stronger animal registration system, however, may give rise to new pet insurance products by eradicating various loopholes and malpractices stemming from the current system, including overlapping insurance claims.
The animal registration code issued by the animal registration system can be used to access information on whether the pet is engaged in a double contract.
There are some, however, who continue to question the importance of the pet insurance market, since South Korean veterinary hospitals currently do not have unified standards when it comes to pricing for various medical procedures, which makes it very difficult for insurance firms to calculate insurance payments.
“Unless animal hospitals manage to come up with pricing standards, we will continue to lose money,” said a source familiar with the insurance industry.
Lina Jang (firstname.lastname@example.org)