Insurance plans that give incentives to clients when they improve their health by walking or getting medical checkups are set to be introduced in South Korea as soon as later this year.
The Financial Services Commission and the Financial Supervisory Service said last week that guidelines had been established for health rewards insurance policies, reported Korea Bizwire.
The business model for health rewards policies is based on life and sickness insurance plans which make a profit from clients becoming healthier, as loss ratios improve when clients are less likely to become ill or die early.
Similarly, clients of health rewards insurance plans are required to prove they are putting in the required effort to improve their health, for instance, by quitting smoking, exercising, dieting, or getting vaccinated, the results of which will be assessed by insurance companies.
For instance, clients are asked to walk 10,000 steps a day, and the company will verify whether or not the goal has been met through wearables such as smart watches or smart bands that keep records.