Cancellation of insurance policies hit record high in another data underscoring deterioration in livelihoods from protracted economic slump in Korea.

According to Korea Life Insurance Association and General Insurance Association on Monday, local insurers paid out a combined surrender value of 23.67 trillion won ($21.1 billion) from January to November in 2018, up 18 percent from the same period in 2017. The figure already surpassed the previous record high amount of 22.1 trillion won for the full 2017.

The number of cases on insurance policy termination due to non-payment of premium also increased to around 1.23 million during the Jan-Nov period last year, up from 1.17 million from the same period in 2017. Life insurers returned 1.59 trillion won for the policy cancellation on non-payment, exceeding the 2017’s annual amount of 1.55 trillion won. Non-life insurers also paid 9.74 trillion won in refund from January to October last year, up 11.3 percent on year.

When an insurance policy is canceled before its expiration date, policyholders receive much less than what they have paid as monthly premiums. The increase on early cancellation despite the loss could mean that there are many people suffering from financial difficulties. Insurance agents said there were an increasing number of early policy terminations by self-employed people last year.

By Kim Gang-rae and Choi Mira

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