South Korea wants more players in the pet insurance market
It is believed that less than 1% of the pet population is insured in the East Asian country.
The Financial Services Commission (FSC), the South Korean government’s top financial regulator, has recently introduced measures to “help bring out improvements to pet insurance services” in the country.
These new measures include “ensuring the stable operation of pet insurance services based on a reasonable veterinary fee rates system.”
According to officials, there is a need to “create a one-stop service enabling pet owners to sign up for pet insurance, file for insurance claims, manage the health conditions of their pets and register their pets.”
Furthermore, the FSC registered a proposal to “improve” the structure of pet insurance products and develop new products tailored to the needs of pets and their owners.
Officials in Seoul also suggest allowing insurers specializing in pet insurance to operate in the market.
Boosting cooperation
The FSC highlighted that these proposed improvements aim to increase cooperation between the veterinary and insurance industries.
“The authorities will particularly work on boosting cooperation between the veterinary and insurance industries in order to bring about improvements and reduce inconveniences in the provision of veterinary and pet insurance services to consumers,” it says.
The financial regulator and the Ministry of Agriculture, Food and Rural Affairs (MAFRA) say they will continue to maintain close communication with the relevant authorities and industries to ensure effective implementation of the proposed measures.
Why is insurance relevant?
According to the government, there are nearly 8 million dogs and cats in South Korea.
An official survey by Asia News Network found that 83% of pet owners found high vet bills an issue when it came to insuring their pets.
Official figures show that Korea’s pet insurance enrolment rate stood at around 0.9 percent in 2022. The Korea Credit Information Service divulged that only 0.8% of 7.2 million pet owners in the country had pet insurance plans as of October 2022, which is about 55,000 pets.
The South Korean government recently announced comprehensive policies to elevate the sector to global standards by 2027, including an investment of ₩15 trillion ($11.4B/€10.3B) to expand the local industry by 2027.
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