SEOUL, June 2 (Korea Bizwire) – There are still cases in which insurance companies refused to pay insurance money for unsubstantiated reasons. According to the Korea Finance Consumer Federation, consumers ended up getting nothing in one out of every 100 claims cases on average.
In 2013, the ratio of claims non-payment was 1.02 percent for life insurers, up 6.2 percent from the previous year. The corresponding ratio for property and casualty insurers was 0.88 percent, up 1.1 percent from 2012.
As for the degree of dissatisfaction, that for life insurers was 5.7 times higher at 0.69 percent than P&C insurers’ 0.12 percent. For P&C insurance companies, the degree of dissatisfaction fell to 0.12 percent from 0.21 percent in 2012. The dissatisfaction degree is represented by the ratio of policy cancellation after a claim is made.
The consumer advocacy group examined disclosure data as of December 2013 and found that the insurance company with the lowest rate of claims non-payments was Shinhan Life at 0.33 percent. In the property & casualty segment, AXA General Insurance led the industry with 0.44 percent.
The companies with the lowest degree of consumer dissatisfaction were Hyundai Marine & Fire (0.01%), Dongbu Fire (0.03%), and LIG Insurance (0.04%). The companies that have seen the biggest improvement in terms of dissatisfaction degree included AXA General Insurance (0.44% from 3.08%) and Nonghyup Property & Casualty (1.09% from 4.97%).
Meanwhile, the P&C insurers with the highest claims non-payment ratio were MG General Insurance at 5.83 percent, followed by ACE Insurance (2.69%) and AIG Insurance (1.58%). Of the life insurers, the companies with the highest claims non-payment ratio included KB Life (4.08%), AIA Life (3.81%), and Tongyang Life (2.98%).
In terms of the degree of dissatisfaction, AIG Insurance (2.0%) and The-K Non-Life Insurance (1.7%) were higher than any other property & casualty insurers. Among life insurance companies, AIA Life (3.6%), Hyundai Life (2.7%), and Allianz Life (2.5%) were higher than their rivals.
Written by Sean Chung (email@example.com)