Industry insiders have reported that some insurance companies are discontinuing dental insurance products due to worsening loss ratios. (Image courtesy of Yonhap) SEOUL, Aug. 21 (Korea Bizwire) – Kim, a Seoul resident who has long avoided dental check-ups, recently began exploring dental insurance options after experiencing swollen gums and sensitive teeth.
With individual inlays and crowns costing hundreds of thousands of won, the potential treatment expenses are daunting. However, Kim faces an ethical dilemma after hearing advice from an acquaintance: sign up for multiple dental insurance policies, then cancel them after three months for a potential financial gain. This scenario highlights a growing concern in South Korea’s insurance industry.
Industry insiders have reported that some insurance companies are discontinuing dental insurance products due to worsening loss ratios. Insurance Company A halted sales of dental insurance in 2021 with no plans to reintroduce such products. Similarly, Insurance Company B ceased dental insurance sales through legal insurance agencies (GAs) in April of last year.
The insurance sector attributes these decisions to loss ratios exceeding 100%, indicating that insurers are paying out more in claims than they receive in premiums. Typically, monthly premiums for dental insurance hover around 30,000 won. Despite insurers implementing a minimum three-month waiting period before coverage begins, in an attempt to improve loss ratios, many pol.