Insurance products that guarantee pregnancy, childbirth, and infertility are gaining popularity. Until now, pregnancy and childbirth had not received insurance benefits because they were not considered 'accidental incidents.' However, as financial authorities have included pregnancy and childbirth as subjects of insurance coverage as part of measures to address low birth rates, the development of such products has been enabled, leading to an increase in demand, particularly centered around Hanwha General Insurance, which specializes in women's insurance.
According to the insurance industry on the 25th, the total insurance premium for Hanwha General Insurance's flagship product, 'Signature Women’s Health Insurance,' has reached 262.8 billion won since its launch in July 2023 until last month. During the same period, the monthly premium reflecting the initial premium paid by customers upon signing up, which represents the new contract sales amount, is 29.2 billion won, averaging 17.5 billion won per year. Considering that Hanwha General Insurance's new contract sales last year were 72.8 billion won, about 24% of sales have come from Signature Women’s Health Insurance.
The most striking feature of this product is its coverage for pregnancy, childbirth, and infertility. Hanwha General Insurance launched its first product in 2023 (version 1.0), focusing on the 'Infertility Care Package' that covers infertility treatments. Additionally, if a customer gives birth, the amount of insurance benefits they can receive over the next five years has been doubled.
Taking a further step, Hanwha General Insurance introduced a 3.0 product that provides childbirth support funds in November last year, making it the first in the industry to do so. Customers receive 1 million won for the first child, 3 million won for the second, and 5 million won for the third child, totaling 9 million won.
This product also compensates for hospitalization expenses related to pregnancy and childbirth. It introduced coverage for cesarean surgeries, which were not previously compensated, and also covers expenses for scar treatments within two years after a cesarean section. Notably, for the first year after childbirth, there is a premium waiver benefit where the insurance company covers the premium payment. These benefits have all received exclusive usage rights, known as patents, in the insurance industry.
As the product gained popularity, the proportion of new female subscribers at Hanwha General Insurance increased from below 50% before the product launch to 56% a year after its release in July 2023. Particularly, the number of female customers in the childbearing age group (ages 15 to 49) more than doubled during the same period. Overall, new long-term customers increased by 38.3%.
Until recently, insurance companies did not cover childbirth, including cesarean births and miscarriages. Insurance is fundamentally designed to compensate for damages incurred by accidents that cause bodily harm, and pregnancy and childbirth are not considered accidental incidents. There are suggestions within the insurance industry that, if customers find themselves in the unique situation of pregnancy and childbirth, they might undergo unnecessary examinations, which could affect the product's viability.
However, following the implementation of a plan to recognize pregnancy and childbirth as subjects of insurance coverage by financial authorities in August last year, the development of related products began. Currently, most products cover diseases and conditions that arise during the pregnancy and childbirth process.
The 5th generation real insurance expected to launch in June next year is also anticipated to include coverage for pregnancy and childbirth. Kyobo Life Insurance is expanding its reach by offering 'Kyobo e Childbirth Safe Insurance,' which covers hospitalization treatments related to hypertension and diabetes during pregnancy for 29 employees of HD Hyundai Group. Samsung Fire & Marine Insurance launched maternity and baby insurance in October 2023.
The Insurance Research Institute suggested in a report last July that 'it seems most appropriate to have insurance products that cover diseases related to pregnancy and childbirth, where adverse selection management is possible and there is demand,' stating that 'it is expected that demand will increase, and insurance companies need to pay more attention to this.'