Lee Byeong-rae, chairman of the Non-Life Insurance Association, stated that the 5th generation real insurance, expected to be launched in June next year, will cover pregnancy and childbirth. In the past, pregnancy and childbirth have not received insurance benefits because they were not considered 'accidental incidents.' However, at the insurance reform meeting led by financial authorities last year, it was decided to include pregnancy and childbirth as insurance coverage, and product development is currently under discussion.
The chairman noted at a press conference held on the 19th at the Press Center in Jung-gu, Seoul, that "discussions on the 5th generation real insurance are underway, and it is expected to be a product that covers pregnancy and childbirth." However, regarding specific details about the 5th generation real insurance, he was reserved, saying, "We will ensure that viable measures can be drawn out."
The chairman mentioned the individual insurance product covering pregnancy and childbirth, citing 'one coverage for infertility treatment expenses,' and expressed hopes that "a product to support childbirth expenses or parenting expenses can be developed."
The chairman also stated that he would propose a plan to establish a tax credit limit of 1 million won for coverage insurance premiums. This means that if you enroll in coverage insurance and pay premiums, you will receive a tax credit benefit of up to 1 million won per year. Under the current income tax law, there are tax credit benefits for coverage insurance at 1 million won and for disability-specific insurance at 1 million won. The chairman asserted, "We need to prepare measures that ultimately reduce the national burden of caregiving expenses by providing some form of incentive."
Additionally, the Non-Life Insurance Association has decided to promote an insurance subscription service. Like paying a monthly subscription fee to use household appliances, customers pay a fee to use insurance for a specified period. In fact, the American insurance company Lemonade has bundled auto, home, pet, travel, and health insurance and sells them at discounted prices while allowing customers to easily change the collateral within the product.
The Non-Life Insurance Association has decided to pursue three key strategies this year that include these contents. First, in order to strengthen the role of social safety nets, it will develop products related to pregnancy and childbirth and activate senior insurance such as in-kind caregiving insurance.
To secure sustainability and enhance consumer trust, measures will be prepared to prevent leakage of real insurance funds due to excessive treatment of minor auto accidents and non-severe excess medical care, while also strengthening capabilities to respond to insurance fraud.
In terms of innovation in insurance services, additional to the insurance subscription service, an artificial intelligence (AI) system will be established to proactively prevent complaints, and counseling linked through sign language interpretation centers will be provided for individuals with hearing and speech disabilities.
The chairman said, "All great growth and development occur amidst risk," adding, "We will faithfully fulfill the role and responsibility required of the non-life insurance industry and contribute to strengthening the social safety net, securing the growth momentum of a sustainable insurance industry."