Insurance companies operating indemnity medical insurance have notified customers that their premiums may rise by more than 20% next year.
Each insurer has recently sent a product notice to inform subscribers about the expected increase in insurance premiums ahead of their real-life insurance renewal in January next year.
The targets for which the notice was sent are the subscribers of'standardized loss', which started to sell in October 2009 and'new loss', which was introduced in March 2017, and whose renewal is coming in January next year.
It is being announced that standardized loss subscribers may be subject to an initial increase rate of up to 20%, and new loss subscribers may be subject to a maximum increase of 10%.
The period for renewal of the old real non-life insurance product before October 2009 is April next year, so it is not included in this guide.
The insurance industry forecasts that the risk loss rate of real-life insurance will also exceed 130% this year as a trend through the third quarter.
The risk loss ratio refers to the ratio of the insurance premium paid to the'risk insurance premium', which is a portion of the insurance premium paid by the contractor, excluding business operation expenses, and the insurance company loses if it exceeds 100%.
The increase in medical expenses at clinic-level hospitals, especially manual treatment and multifocal cataract surgery, which is not covered by health insurance, is one of the main reasons for the increase.
Therefore, the insurance industry insists that it is necessary to raise the legal increase to the upper limit of 25% in order to meet the profitability.
At the end of last year, the insurance industry insisted that a double-digit increase in premiums was needed, but it was only 9% higher, opposed by the authorities.
Therefore, it is highly likely that the rate of increase will be adjusted again this year due to government intervention.
However, the member burden is bound to increase.
In particular, the majority of subscribers who rarely claim or claim a small amount of insurance each year have troubled with maintaining insurance.
As of 2018, approximately 66% of all subscribers did not claim any insurance.