Pet insurance market hopeful over next government's veterinary care policy

A dog undergoes an X-ray examination at an animal hospital in this undated photo. Korea Times file

The pet insurance market is hopeful that the new government will help reverse the slower-than-expected growth in subscription rate despite a sharp increase in the number of Koreans living with companion animals.

Lee Jae-myung, the presidential frontrunner from the liberal Democratic Party of Korea (DPK), and Kim Moon-soo, Lee’s opponent from the conservative People Power Party (PPP), all have pledged to standardize the costs of veterinary care.

The costs vary greatly and thus place a significant financial burden on an estimated 15 million Koreans who own pets.

A government-led cost policy is expected to improve transparency around premiums, coverage and other cost-related issues in pet insurance, as well as boost the number of subscribers, according to industry officials.

They noted that a lack of consistency was a major reason why only a small percentage of pet owners opt for veterinary insurance.

Since companion animals are not covered by national health insurance, owners must bear 100 percent of the medical costs.

While private pet insurance is an option, uptake remains low, and veterinary charges vary widely — even for the same procedures — adding to the financial strain experienced by pet owners.

Multiple surveys by government and private institutions have shown that the insurance subscription rate has remained between 1 and 2 percent for years.

“Under the circumstances, the pet insurance sector certainly can be optimistic that, whichever candidate wins the presidency, the subscription rate will begin to increase shortly after,” the Citizens’ Coalition for Economic Justice, a Seoul-based civic group, said in a statement.

The coalition pointed out that the new president will begin his term immediately after the snap presidential election on Tuesday.

A research fellow from the Korea Insurance Research Institute voiced a similar view.

“The costs of veterinary care have been opaque, making it difficult for an increasing number of pet owners to estimate how much they would need in case their animals get sick and need medical attention,” he said.

He went on to say, “A significant difference in medical costs among animal hospitals accordingly have prompted insurance firms to determine premiums as they wish, and this results in customer dissatisfaction.”

“This problem hopefully can be resolved under the much-anticipated standardized cost policy,” he added.

The DPK candidate has addressed a need to standardize costs for animal medical care and set up relevant regulations.

Lee also wants to broaden the scope of value-added tax–exempt categories on veterinary care, so that pet owners have wider access to care with a reduced financial burden.

The PPP candidate has called for mandating the disclosure of veterinary costs and medical records, believing that this will encourage animal hospitals to offer more affordable prices to retain customers.

Additionally, Kim advocates for the diversification of pet insurance products and improvements to coverage and support conditions.