Half of the recent applicants for health insurance policies designed for individuals with pre-existing conditions are in their 60s. (Image courtesy of Yonhap)
SEOUL, Jul. 11 (Korea Bizwire) – In a surprising trend, half of the recent applicants for health insurance policies designed for individuals with pre-existing conditions are in their 60s, according to a recent analysis.
This demographic, which has historically faced challenges in obtaining coverage, is emerging as a significant force in the insurance market, coinciding with the retirement of economically stable baby boomers.
KB Insurance, a leading South Korean insurer, reported on July 9 that 47.1% of the 30,000 new policies sold last month for their “KB 3.10.10 Wise Simple Health Insurance Plus” product were purchased by individuals over 61 years old.
This was followed by those in their 50s (18.8%) and 40s (15.5%), while applicants under 30 accounted for just 2.9% of the total.
The company introduced this innovative product in May, becoming the first in the industry to offer insurance for those with pre-existing conditions under the “3.10.10″ criteria.
This refers to applicants who have not received a disease diagnosis or medical examination in the past 3 months, have not been hospitalized or undergone surgery due to illness or accident in the past 10 years, and have not been diagnosed with cancer, stroke, or acute myocardial infarction in the past 10 years.
While extending the health disclosure period from 5 to 10 years, KB Insurance managed to reduce premiums by an average of 15%, sparking a competitive response from other insurers who have since launched similar products.
Traditionally, individuals over 60 have been marginalized in the insurance market due to age restrictions and past medical histories.
According to the Insurance Research Institute, in 2022, policyholders in their 60s represented only 19.3% of third-sector (health) insurance contracts with property and casualty insurers, the lowest among all age groups.
The 50-59 age group led with 27.6%, followed by those in their 40s (26.7%) and under 30s (26.4%).
Industry experts had predicted that the primary demographic for these new policies would be individuals in their 40s and 50s. However, the enthusiastic response from those in their 60s has taken many by surprise.
The new policies also offer competitive pricing. In June, KB Insurance reported that the average monthly premium for their pre-existing condition policies was 85,000 won, 7,000 won less than the average premium for comprehensive health insurance policies during the same period.
Gender distribution among policyholders was nearly even, with men accounting for 52% and women for 48%.
Beyond the basic accidental death coverage, the most popular additional coverages included premium payment exemption, diagnosis benefits for minor cancers, major cancer diagnosis benefits (excluding minor cancers), and daily hospital care benefits.
Coverage for cerebrovascular and cardiac conditions also approached a 40% enrollment rate.
Lina Jang (linajang@koreabizwire.com)
