Loss of medical indemnity insurance businesses widens to 2 tln won in 2023

The combined loss by insurers from selling medical indemnity insurance products widened from a year earlier in 2023 despite an increase in sales, data showed Friday. The combined loss of seven life insurers and 10 non-life insurers from their medical indemnity insurance, or reimbursement-backed private medical insurance, came to 1.97 trillion won (US$1.44 billion) last year, up 29 percent from a 1.53 trillion won loss the previous year, according to the data from the Financial Supervisory Service (FSS). Their loss ratio rose 2.1 percentage points from 101.3 percent to 103.4 percent over the cited period. The rise in the loss came despite a 9.5 percent on-year increase in sales of insurance products to 14.4 trillion won in 2023, due partly to a rise in payments for treatments uncovered by the health insurance, according to the financial regulator. "(The FSS) will continue to improve the system so as to prevent any leaks of insurance money, so that medical indemnity insurance can continue to provide person al safety nets to the people," it said. "It also plans to strengthen its oversight so that insurance payments for legitimate requests can be made swiftly," it added. Medical expense insurances are products unique to South Korea that often cover the entire cost of medical treatments paid by customers. Source: Yonhap News Agency