Legal barriers hinder growth of Korea’s animal insurance coverage market

Dogs are seen in a flight heading to Jeju Island with their households, May 19. Joint Press Corps

By Lee Yeon-charm

One in 4 Korean families consist of animals which number is just anticipated to grow. Yet, unlike other appropriate markets revealing constant development, insurance coverage companies are having a hard time to broaden the animal insurance coverage market.

As of 2022, the rate of animal owners who acquired animal insurance coverage was listed below even 1 percent, standing at 0.8 percent.

Pet owners grumble that the protection offered by animal insurance coverage typically disappoints expectations in spite of substantial month-to-month payments, while insurance coverage companies blame legal barriers for their limited services.

According to insurance coverage market sources, Thursday, insurance coverage companies are paying utmost attention to whether a modified expense mandating vets to provide medical records to animal owners will pass the National Assembly this time.

The existing Veterinarians Act mandates veterinarians to compose medical records however does not implement them to provide or permit animal owners to see these records. Therefore, if veterinarians pick not to reveal the records, animal owners have no chance of discovering which medications or treatments have actually been administered to their animals.

For insurance coverage companies, this absence of openness has actually been thought about the biggest barrier to broadening the animal insurance coverage market. Despite the marketplace being promoted as a blue ocean, companies discover it hard to examine claims based exclusively on invoices if medical records are not offered.

“Without the records, it’s tough to examine the insured quantity properly. To prevent monetary losses, the protection undoubtedly ends up being conservative,” an authorities from the insurance coverage market said.

For circumstances, some animal owners wrongly declare compensations by reporting that their animal received gum surgical treatment, when it really went through scaling, a treatment not covered by the insurance coverage.

The vets association likewise points out possible substance abuse as a factor for opposition. As a considerable variety of veterinary medications can be quickly acquired without a prescription, they are worried that the disclosure of comprehensive medical records might lead animal owners to self-medicate their animals.

Amid this tug-of-war, Rep. Her Eun-a from the governing People Power Party proposed a modified expense previously this month, which would need the disclosure of medical records under specific scenarios. There is a high opportunity it might get approval as it went through previous conversations with the federal government and the veterinary market. However, the insurance coverage market does rule out the steps to be acceptable.

According to a recent report from the Korea Insurance Research Institute, the rates of animal owners who have actually acquired animal insurance coverage are 40 percent in Sweden, 25 percent in the U.K. and 14 percent in Norway. The animal insurance coverage market in Japan is likewise approximated to reach 1 trillion won.

“Authorities require to drive a policy of standardizing the varied treatment systems throughout veterinarian centers and mandating the issuance of medical records,” the report composed.