The Korean government is facilitating the use of pets’ biometric information to bolster the pet insurance market, in response to the increase in the number of pet owners.
The support for pet insurance was one of key pledges by President Yoon Suk Yeol, who has five cats and six dogs.
The regulator will allow for pilot projects for biometric verification next year and legislate related regulations in 2025.
The Financial Services Commission and the Ministry of Agriculture Food and Rural Affairs announced a set of measures Monday for improving the pet insurance system.
The government is reviewing the utilization of biometric identification using nose print or iris data to boost the registration rate. Under the current system, a microchip or device is injected to the pet’s skin or attached outside, which puts many pet owners off.
Presently, it is difficult for insurers to specify the unregistered pets, hindering the finalization of the insurance contract. The government is expecting the application of biometric data to boost the pet insurance market with an easy verification process.
Additionally, the government plans to offer an insurance signing-up system, making the enrollment process more accessible. The pet owners can sign the insurance at veterinary clinics, as the clinics can directly send the pet’s medical reports and other documents to the company.
Following the implementation, owners can sign up for long-term insurance that lasts more than three years for their pets at the animal clinic. Now, the pet insurance last only one year.
The Financial Services Commission said it is trying to “make a one-stop system where owners can register, do daily checkups and sign insurance in one place.”
Plans for mandating the issuance of medical reports are also put into consideration. According to the Veterinarians Act, veterinarians are not obliged to issue medical reports after an animal examination. The regulatory loophole has stood as an obstacle for pet keepers owners to claim sufficient insurance coverage.
In addition, the government is slated to extend the number of insurers specializing in pet coverage. Currently, 11 insurance companies offer pet insurance plans, but there are no companies that exclusively focus on pets.
“[We will encourage] new entry insurers to provide various pet insurance plans and services,” the Financial Services Commission added, “such as by allowing companies to enter the insurance market that focus on respiratory and spinal diseases, which specific breeds are vulnerable to.”
BY HA SU-YOUNG [kim.jiye@joongang.co.kr]
