2023-11-01 04:52:00
Children and their guardians are waiting to receive flu and outpatient treatment at Seongbuk Woori Children’s Hospital in Seoul. /yunhap news
The Financial Supervisory Service put the brakes on setting excessive limits on the ‘flu special contract’, saying it could lead to moral hazard.
According to the insurance industry on the 1st, Hanwha General Insurance decided to stop selling the ‘1 million/500,000 won plan’, which pays up to 500,000 to 1 million won if you get treated for the flu. Hanwha Non-life Insurance plans to sell flu special contracts with a lower limit of 200,000 won.
It is known that the Financial Supervisory Service called an executive of Hanwha General Insurance the afternoon before and conveyed its opinion that it was concerned that the flu special contract limit was excessive. On the same day, Hanwha Non-life Insurance sent a notice to corporate insurance agencies (GA) stating that it would stop signing up for special contracts.
The Financial Supervisory Service plans to hold two meetings with executives of major insurance companies on this day and tomorrow to discuss products that can cause moral hazard, such as special contracts for influenza.
As the Financial Supervisory Service puts the brakes on special flu contracts, products exceeding the limit of 500,000 won are expected to disappear. An official from the Financial Supervisory Service said, “If you catch the flu, all you have to do is go to the hospital, get treatment, and take medication. But paying 1 million won is too excessive,” and added, “(These concerns) have been discussed for a long time.”
The flu special contract is a product that pays insurance money when the subscriber gets the flu and receives treatment, and is a product sold by companies such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and Lotte Insurance. In particular, it attracted the attention of customers as the mandatory wearing of masks was lifted after COVID-19 and the number of cases of influenza increased.
As Hanwha Non-life Insurance raised the special contract limit to 1 million won starting from the 10th of last month, subscription inquiries have increased dramatically. It is said that the computer system was paralyzed, with thousands of items being sold on average per day. However, at the same time, it was pointed out that expanding the limit would cause moral hazard. Since the monthly premium for comprehensive insurance with special provisions is in the range of 10,000 to 20,000 won, excessive treatment aimed at collecting insurance money may increase.
Previously, the Financial Supervisory Service judged that non-emergency coverage among emergency room special contracts was highly likely to cause overtreatment and recommended the suspension of sales. The emergency room special contract is a product that covers the costs incurred when visiting the emergency room due to illness or injury, and you can receive coverage even if it is not an emergency.
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