펫 보험 종류It’s three times more expensive than actual loss insurance… The guarantee is not good
According to the Non-Life Insurance Association’s announcement on the 8th, pet insurance premiums based on the five major non-life insurance companies (Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, Meritz Fire & Marine Insurance, and KB Insurance) range from 40,000 won to 60,000 won per month. These products are mainly aimed at dogs and cats and provide basic coverage for hospitalization and outpatient medical expenses and compensation for surgical expenses. In addition, depending on the product, it increases to 80,000 won per month depending on special contracts such as extended coverage for specific diseases such as knee and hip dislocations, which frequently occur in dogs, and injury coverage. Additionally, insurance premiums may vary depending on the age and breed of the pet.
According to a 2022 survey by the Ministry of Agriculture, Food and Rural Affairs, the number of domestic companion animals (pet dogs + cats) is estimated at 7.99 million. The pet adoption rate has also been steadily increasing by more than 10% every year since 2020. On the other hand, the insurance subscription rate compared to the total estimated population is only about 1.1%. Although the subscription rate has increased from 0.4% in 2020, it is considerably lower than that of advanced countries such as Sweden (40%) and the United Kingdom (25%).
Although we have entered the era of 8 million pets, the subscription rate is only around 1%, and the reasons cited are high insurance premiums and limited coverage. According to the Non-Life Insurance Association’s announcement, the upper premium (based on a 40-year-old male) for the 4th generation actual loss medical insurance of the 5 major non-life insurance companies does not exceed 20,000 won.
Comparing this with Meritz Fire & Marine Insurance’s Pet Per Mint basic type, which has the largest market share, the insurance premium for a 5-year-old Maltese, which is equivalent to a human age of about 39 years, is 59,940 won per month. Pet insurance premiums are almost three times more expensive.
The lack of options is also a reason to hesitate to sign up. The majority of pet insurance products have similar compositions such as deductible rates and compensation limits in addition to basic elements such as hospitalization, outpatient and surgical medical expenses. In a situation where there are not many different types of pet insurance, there is not much difference in the coverage provided by each insurance. This is why it is pointed out that the incentive to sign up for pet insurance is low.
Systems such as standardization of medical fees and pet registration system must take precedence.
The insurance industry is also aware of consumers’ demands to increase coverage and launch diverse products. However, it is explained that product design is not easy because the related systems are holding back. Currently, all treatment items at animal hospitals are non-covered and there are differences in treatment costs between hospitals, making it difficult for insurance companies to secure quality data and calculate appropriate insurance premiums and compensation limits.
The insurance industry also cites the lack of a pet registration system as a difficulty in reviewing insurance benefits. Since 2014, the government has been implementing an animal registration system that involves inserting a microchip with a unique number into the pet’s body. However, as of 2022, the overall registration rate is only 53.4%. Currently, it is difficult to identify individuals, so not only is there a lack of data to check existing medical history during contract underwriting and insurance claim screening, but the industry explains that it is also difficult to confirm whether the dog applied for is the actual dog insured.
An insurance industry official said, “It is true that there has been a lack of data for product development because the pet registration system and issuance of medical records are not mandatory,” and added, “I believe that the business will accelerate as related systems are improved and promotional effects are added.” said.
As pet insurance is a national task of the Yoon Seok-yeol administration, the authorities are also working hard to improve the system. In October last year, the Financial Services Commission and the Ministry of Agriculture, Food and Rural Affairs announced a plan to improve the pet insurance system, which includes mandatory pet registration and simplification of medical billing. Starting this month, it has become mandatory for all animal hospitals with veterinarians to post treatment fees. From the insurance industry’s perspective, it is expected that this will take one step closer to standardizing medical costs. However, since the Veterinary Act must be revised for actual standardization to occur, it appears that it will take time to see actual effects.
An insurance industry official added, “With the recent enforcement of mandatory notification of veterinary hospital treatment fees, we expect that some of the previous obstacles will be resolved.”
