Pet insurance plans are largely unpopular despite sky-high medical costs

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Dressed dogs sit in a stroller at a pet show in Suwon, south of Seoul, November 27, 2020 (Yonhap)

SEOUL, August 31 (Korea Bizwire)The underwriting rate for pet insurance continues to languish at extremely low levels.

The number of general dog and cat insurance contracts stood at 33,621 at the end of last year, which was only 0.4 percent of the estimated number of all pets in the country ( 8.6 million), or 1.5 percent of the 2.32 million pets that have been registered with authorities, according to industry sources.

Last year, the total amount of annual insurance premiums for pets was 15.6 billion won (US $ 13.4 million).

Experts believe the lack of awareness of pet insurance plans, along with mistrust of medical bills due to a lack of standards among veterinary clinics, has led to such a low take-up rate. .

South Korean insurance companies have launched a number of pet insurance policies since 2007 to meet potential demand, but quickly suspended all sales following rising claims rates caused by medical bills. exorbitant.

Several general insurance companies then relaunched pet insurance plans in 2014 following the introduction of the animal registration program, but they have yet to convince the majority of pet owners. .

HM Kang ([email protected])



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