Seoul, South Korea – South Korean health insurance premiums are set to increase by an average of 7.5% next year, according to the Life Insurance Association of Korea and the General Insurance Association of Korea. This marks a slight decrease from the previous three-year average of 8.2%.

However, premiums for fourth-generation health insurance policies, introduced in July 2021, are expected to see a steeper increase of 13% on average. This is the first time these policies will face such a significant premium hike.

The higher premiums reflect the continued rise in healthcare costs and the increasing number of claims made by policyholders. While the overall increase for all policyholders is expected to be 7.5%, individual premiums may vary depending on factors such as the renewal period, type of policy, age, gender, and the insurance company's loss ratio.

“The premium increase is an average across all insurance companies, and the actual increase for individual policyholders may differ,” said an official from the insurance association. "Factors such as the renewal period, type of policy, age, gender, and the insurance company's loss ratio will influence the individual premium increase."

The insurance association explained that the increase in premiums is necessary to ensure the sustainability of the health insurance system. However, the rising costs are putting a strain on many policyholders, particularly those with lower incomes.

Breakdown of Premium Increases:

First-generation policies: Approximately 2% increase
Second-generation policies: Approximately 6% increase
Third-generation policies: Approximately 20% increase
Fourth-generation policies: Approximately 13% increase
The significant increase in premiums for fourth-generation policies is due to a combination of factors, including the relatively short time since their introduction and the higher utilization of healthcare services by policyholders in this group.

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