SEOUL, Aug. 31 (Korea Bizwire) — The subscription rate for pet insurance policies continues to languish at extremely low levels.
The number of contracts for general insurance for dogs and cats stood at 33,621 as of late last year, which was merely 0.4 percent of the estimated number of all pets in the country (8.6 million), or 1.5 percent of the 2.32 million pets that have been registered with authorities, industry sources said.
The total amount of annual insurance premiums for pets last year stood at 15.6 billion won (US$13.4 million).
Experts believe that the lack of awareness about pet insurance plans, as well as mistrust towards medical charges due to a lack of standards among veterinarian clinics has led to such a low subscription rate.
South Korean insurance companies have since 2007 been releasing a number of pet insurances to meet potential demand, but soon suspended all sales following increasing loss ratios caused by exorbitant medical charges.
Several general insurance companies then revived pet insurance plans in 2014 following the introduction of the animal registration program, but they have yet to catch on with the majority of pet owners.
H. M. Kang (firstname.lastname@example.org)