The financial regulator, the Financial Supervisory Service (FSS), has smoothened the path to make it much easier for South Korean to enjoy discounts on health insurance premiums starting in July.
Under the new system, policyholders can submit a simple confirmation form, to be provided by their insurer, that shows whether they meet certain health criteria related to smoking, blood pressure and the body mass index. Insurers are also obliged to inform their customers of their eligibility to apply for discounts periodic emails or letters, reported Korea Bizwire.
Insurance policies, which provide discounts of up to 20% on premiums, are offered by 14 insurance companies for healthy individuals who meet certain health standards. However, only 3.8% of the subscribers took advantage of the offer in the past due to the inconvenience of having to go through a rigorous physical examination designated by the companies, in addition to a lack of promotion with insurers taking a passive attitude towards disclosing the details of the discounts.
“We removed some of the unreasonable aspects from the existing practice, which we believe will help make it easier for consumers to benefit from insurance policies with discounted rates,” said an FSS official. The FSS aims to inject new vigour into the Korean insurance market and to get more people covered by health insurance.