Gov't limits hike in premiums of indemnity insurance

SEOUL, Sept. 21 (Yonhap) -- South Korea's financial regulator and the health ministry said Friday that limits will be placed on raising premiums of indemnity insurance next year.

The move is part of a broader effort by the state-run health insurance program to provide more benefits to ordinary people.

The decision came as the government plans to spend 30.6 trillion won (US$27.4 billion) by 2022 to allow the state-run health insurance scheme to expand the type and number of treatments entitled to the insurance coverage.

For indemnity insurance that has been sold since April 2017, their premiums are likely to fall 6.15 percent next year, according to the Financial Services Commission (FSC).

For such products that had been sold since September 2009, however, their premiums are likely to rise 6 to 12 percent because their loss rates are rising, the FSC said.

Insurance firms in South Korea have been required to limit premium hikes to 25 percent of their indemnity insurance since early this year.

The requirement is aimed at easing the financial burdens of low-income people as indemnity insurance, or reimbursement-backed private medical insurance, is closely related to people's livelihoods.

Under the government's plan, all treatments will be covered by the state insurance program in the future, except for treatment that is clearly not included, such as plastic surgery, officials said.

kdh@yna.co.kr
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