Value context and insight. lkm@koreatimes.co.kr
Life insurers roll out family-oriented products in May
KLIA Chairman Shin Yong-gil
By Lee Kyung-min
By Lee Kyung-min
Life insurers are rushing to introduce wide-ranging products that strengthen family values in May ― the month of family, Sunday.
Kyobo Life has rolled out insurance plans for children that cover eye conditions stemming from an excessive use of smartphones, a frequently observed problem among children as of late.
It also covers various dental treatment costs including orthodontics, a form of dentistry that corrects crooked or misaligned teeth, a common problem among children.
Mirae Asset Life has extended the coverage period for pregnant women to 47 in line with the current trend of women having babies later in life.
The insurance plan that helps with medical expenses needed before, during and after pregnancy, strengthened more practical coverage involving obstetrics and gynecology (OB/GYN) treatment.
Under insurance plans for the elderly introduced by Hanwha, Shinhan, Samsung and Orange Life, would-be subscribers can apply for a shortened screening process even with pre-existing medical conditions.
Such business strategies targeting children and the elderly comes amid a steady rise in their medical expenses over the past decade.
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According to the Korea Life Insurance Association (KLIA), Koreans spent a combined 69.6 trillion won ($59.4 billion) in medical expenses in 2017, more than double the amount from 32.2 trillion won in 2007.
By age, over 6.5 trillion won was spent by those aged under 19, up 1.5 times the figure in 2007, while those aged 65 and older spent 27.1 trillion won, nearly three times more compared to figures in 2007.
The rapid increase, according to KLIA, is weighing on the per-household medical expenditure, given the country's gross domestic product (GDP) grew only 66.4 percent in the same period.
“We see a growing demand not only from children but the senior citizens who will have various health conditions, a natural part of aging,” an official from the life insurance said.
“We will continue introducing new products that will best meet the needs of these respective age groups.”
KLIA data showed that of those aged under 19 that spent a combined 9.4 percent of the total expense, only 2 percent had life insurance plans.
Of those aged 65 and older that spent a combined 39 percent of the total, only 8.6 percent had life insurance plans.