The criteria for paying diagnosis benefits for reproductive organ cancers such as prostate cancer or uterine cancer were found to vary widely among life insurers. Insurers are tightening coverage conditions by classifying reproductive organ cancers separately from general cancers to cut diagnosis benefits or defer the start of coverage. A trend of shrinking coverage for reproductive organ cancers that used to be centered in the non-life insurance sector appears to be spreading to the life insurance sector.
According to the insurance industry on the 23rd, Shinhan Life's Shinhan SOL Cancer Insurance pays diagnosis benefits for prostate cancer separately from general cancers. After one year from enrollment, it pays 100% of the insured amount for general cancers and severe thyroid cancer, but only 30% for prostate cancer. If the insured amount is 10 million won, the diagnosis benefit for general cancer is 10 million won, while for prostate cancer it is limited to 3 million won.
Kyobo Life Insurance also excludes prostate cancer from general cancers in some products and covers it under a separate minor cancer diagnosis rider. The Kyobo Simple Cancer Lifetime Protection Insurance classifies prostate cancer as a covered condition under the minor cancer diagnosis rider. Based on one year after enrollment, if the diagnosis benefit for general cancer is 10 million won, the diagnosis benefit for prostate cancer is around 4 million won.
KDB Life classifies cervical cancer, endometrial cancer, ovarian cancer, prostate cancer, and testicular cancer as "male and female reproductive organ-related cancers" in its direct cancer insurance product. After two years from enrollment, if the diagnosis benefit for general cancer is 50 million won, it pays 10 million won for male and female reproductive organ-related cancers. That is about 20% of the general cancer diagnosis benefit.
There are also products that do not classify prostate cancer and uterine cancer separately from general cancers but reduce the benefit amount for a certain period. Samsung Life Insurance's Samsung Internet Nonrenewable Cancer Insurance (no-surrender-value type) pays 50% of the insured amount if a prostate cancer or uterine cancer diagnosis is made within one year of the start date of cancer coverage. After one year, it pays 100% of the insured amount.
The reason cancer diagnosis benefits differ by insurer is that the categories of general cancer, minor cancer, and specified cancer are not official classifications under the Korean Standard Classification of Diseases and Causes of Death (KCD). Insurers set cancer types and coverage standards on their own for each product, and even within the same insurer, cancer categories and payment criteria can vary by product.
In particular, as early diagnosis has led to a sharp rise in the incidence of male and female reproductive organ cancers, insurers are reducing benefit amounts to manage loss ratios. According to National Cancer Center national cancer registry statistics, prostate cancer ranked No. 1 in incidence among men, and uterine cancer showed high incidence among women in their 20s to 40s.
An insurance industry official said, "Reproductive organ cancers such as uterine cancer and prostate cancer have high incidence and good treatment outcomes, so non-life insurers classified them as minor cancers long ago," and added, "Recently, life insurers have also been classifying reproductive organ cancers as specified cancers or minor cancers and differentiating coverage from general cancers."