SEOUL, Sept. 17 (Korea Bizwire) — A brand new non-life insurance coverage product to compensate people and companies for monetary losses brought on by the unfold of infectious illness like COVID-19 is predicted to be obtainable late subsequent 12 months.
The Korea Insurance coverage Improvement Institute (KIDI) introduced on Wednesday that it had began growing an infectious illness danger analysis model to design a brand new non-life insurance coverage product that may compensate people and companies for the monetary damages brought on by the unfold of infectious ailments.
At current, life insurance coverage and precise loss insurance coverage merchandise cowl solely the therapy prices for sufferers affected by infectious ailments.
Most of these insurance coverage merchandise don’t supply compensation for the monetary losses brought on by the suspension of enterprise actions and delay or cancellation of occasions ensuing from social disasters just like the COVID-19 pandemic.
Insurance coverage corporations can’t afford to develop non-life insurance coverage merchandise that may fulfill such wants, since they don’t have sufficient expertise or information to calculate the premium charges for such merchandise.
Primarily based on its earlier expertise in growing quite a lot of non-life insurance coverage merchandise, together with ones that cowl damages brought on by typhoons, floods or heavy rainfall, the KIDI determined to develop an infectious illness danger analysis model over the subsequent 12 months.
The KIDI defined that after growing the model, it can design a non-life insurance coverage product to cowl infectious ailments via consultations with insurance coverage corporations and supervisory authorities.
“We’re planning to design the infectious disease insurance product towards providing compensation not only to business owners who suffer losses due to the government’s disinfection measures but also to individuals who suffer damages due to the delay or cancellation of important events such as wedding ceremonies or trips,” the institute stated.
Lina Jang ([email protected])