SEOUL, Nov. 2 (Korea Bizwire) – Insurance plans that give incentives to clients when they improve their health by walking or getting medical checkups are set to be introduced in South Korea as soon as later this year.
According to the Financial Services Commission and the Financial Supervisory Service on Wednesday, guidelines have been established for health rewards insurance policies, which reward clients for participating in activities and achieving set goals to improve their medical condition.
The business model for health rewards policies is based on life and sickness insurance plans which make a profit from clients becoming healthier, as loss ratios improve when clients are less likely to become ill or die early.
Similarly, clients of health rewards insurance plans are required to prove they are putting in the required effort, for instance, by quitting smoking, exercising, dieting, or getting vaccinated, the results of which will be assessed by insurance companies.
For instance, clients are asked to walk 10,000 steps a day, and the company will verify whether or not the goal has been met through wearables such as smart watches or smart bands that keep records.
“Given the introduction of guidelines, plans and approval from the Financial Supervisory Service, the insurance plans are expected to be released later this year or early next year,” said Son Joo-hyung, an official at the Financial Services Commission.
Some say the new type of insurance policy could not only benefit insurance companies and clients, but also the economy, by creating jobs in the IT and health care fields.
Last month, Choi Jong-gu, the president of the Financial Services Commission, argued that ‘insuretech’ products, which are receiving international recognition, need to be developed further in South Korea.
Ashley Song (email@example.com)