Korea Insurance Medical indemnity losses point to premium upside; Samsung F&M is most preferred

研报英文原文证据摘录

Korea Insurance Medical indemnity losses point to premium upside; Samsung F&M is most preferred

ance:Medicalindemnityinsurancemarket(#ofoutstandingcontracts)). By

generation, first-generation products, with a 3-5 year repricing cycle, and

second-generation products, with a 1-3 year cycle, account for 17% and 41%

of total policies, respectively. Third- and fourth-generation products, which

have higher co-payment requirements, account for 22% and 18%, respectively.

• Underwriting trends. Unlike the relatively profitable individual health

insurance market, medical indemnity has seen material underwriting

deterioration, as past premium increases have lagged medical cost inflation.

Health premiums reached W18T in 2025, up 10.0% oya, while claim payouts

rose faster to W17T, up 11.4% oya. Including expenses and other costs, the

industry recorded an underwriting loss of W1.87T (Figure 4KoreaInsurance:Medicalindemnityinsuranceprofittrend). On earned

premiums, the industry loss ratio worsened to 101%, up 1.7%p, with third- and

fourth-generation products showing elevated loss ratios of 120.3% and

115.1%, respectively (Table 2KoreaInsurance:Losratiobygeneration). Claims are also more concentrated in clinics

than tertiary hospitals, with a higher mix of non-covered services (Table 2KoreaInsurance:Medicalindemnitypremiumandclaimstrend).

• Prefer Samsung F&M/DB Insurance. We believe the regulatory statistics

provide a strong basis for potential double-digit health premium increases in

Jan-27. This should be supportive for non-life insurers’ earnings, through a

lower risk loss ratio outlook (Figure 5KoreaInsurance:LTlinerisklosratiotrend) and greater reserve book stability,

including CSM. Given that 30-50% of non-life insurers’ long-term reserve