Insurers are likely to face difficulty in raising premiums on auto and indemnity medical insurance as the government of newly-elected President Moon Jae-in is considering a plan to tighten controls over such products, officials say.
The move, which appears to be aimed at easing financial burdens of low-income people, is expected to be implemented as Mr Moon appoints a new head of the Financial Services Commission, the nation's top financial regulator, reported the Yonhap News Agency.
Ruling party officials have raised the idea of tightening price controls on auto and indemnity medical insurance, or reimbursement-backed private medical insurance because they are "closely related to people's livelihoods", a senior FSC official said.
Insurers have come under scrutiny as they sharply increased premiums. According to a parliamentary audit report, Heungkuk Life Insurance hiked premiums for female holders of indemnity medical insurance by 47.9% last year. As for male holders, premiums of Heungkuk's indemnity medical insurance rose by 35% last year. Hyundai Marine & Fire Insurance and Allianz Life Insurance Korea increased premiums of such insurance by as much as 28.9% and 24.6%, respectively, last year.
KB Insurance raised premiums of its auto insurance by 3.5% last year, while Hyundai Marine & Fire Insurance increased premiums by 2.8%.