Insurance in Korea
What affects the cost of insurance in Korea?
Insurance premiums in Korea depend on the type of insurance and the terms of enrollment. Even for the same person, the premium can vary with the risks covered, the amount and duration of coverage, whether the policy renews, and the out-of-pocket amounts and optional endorsements selected.
For some health and accident products, age, health, previous treatment, occupation and workplace risk, and the amount of coverage may affect underwriting and the premium. Motor-insurance pricing may take account of several factors together, such as the type and use of the vehicle, the permitted drivers and their ages, insurance and accident history, traffic violations, and mileage-related endorsements.
Premiums can differ even within the same insurer according to the application channel or discount endorsements. A lower premium does not always mean a better contract, and a higher premium does not necessarily mean broader coverage. Compare the scope of coverage, exclusions, out-of-pocket amounts, renewal terms and total payment period on the same basis.
For foreign residents, identity verification and residence status may affect whether enrollment is possible. Official information does not, however, support an industry-wide rule that a fixed surcharge applies simply because someone is foreign. Obtain an actual quotation for the specific insurer and product terms you are considering.
What to compare alongside the premium
- Whether the coverage items and insured amounts are the same
- Whether out-of-pocket amounts and exclusions are the same
- Whether the policy renews and the premium may change at renewal
- The premium-payment period and the total insurance period
- Whether the same optional endorsements are included
- Any surrender value or loss on early cancellation
- For motor insurance, the permitted-driver scope and endorsement conditions
Limits of examples
Products do exist for people with medical histories whose underwriting method and out-of-pocket structure differ from standard-underwriting medical-expense insurance. A quoted premium for one such case cannot be applied unchanged to another insurer or person.