Insurers in South Korea may find it harder to raise motor and indemnity medical insurance premiums, as the new government under President Moon Jae-in is looking at tighter price control on these products, according to several officials.
The move seems to be aimed at reducing the financial burdens of low-income citizens and may come into effect when Moon appoints a new chief of the Financial Services Commission (FSC).
A senior FSC official told the Korea Herald that ruling party members want more regulation of these types of insurance as they are “closely related to people’s livelihoods”.
Insurers have earned criticism from various sectors for increasing premiums, which some have felt to be unjust.
A parliamentary audit report released by progressive lawmaker Rep. Sim Sang-jeong showed that Heungkuk Life Insurance increased premiums for medical insurance for female policyholders by 47.9% last year, while male policyholders’ premiums rose by 35%.
Meanwhile, Hyundai Marine & Fire Insurance and
Allianz Life Insurance Korea hiked premiums by 28.9% and 24.6%, respectively.
For motor insurance, KB Insurance increased premiums by 3.5% in 2016, while Hyundai Marine & Fire raised theirs by 2.8%.
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