[CBC News] Last May, online communities were filled with reviews from users saying they were shocked when they received their indemnity insurance renewal notices. Indemnity insurance premiums, which had been rising slightly each year, recently saw a particularly steep increase. The hike was most pronounced among subscribers of 4th-generation indemnity insurance.

The overall increase in indemnity insurance premiums this year is driven by a surge in the loss ratio of 4th-generation indemnity insurance. A high loss ratio means that insurers paid out more in claims than they collected in premiums. The problem is that insurance payouts were not evenly distributed. A small number of subscribers accounted for a significant portion of all claims, while the majority hardly filed any. Ultimately, this structure—where the many pay premiums while the few enjoy the benefits—has led to an overall increase in premiums.

Amid this trend, the 5th-generation indemnity insurance has recently been launched. Consumers looking to sign up now can only choose 5th-generation products. While premiums are lower compared to previous generations, the coverage structure has changed significantly, leading to a notable increase in people searching for 'indemnity insurance recommendations' to find the right coverage for themselves. Since the co-payment rate and coverage scope change with each generation, failing to verify the details in advance may result in receiving less insurance money than expected when claiming hospital bills, causing confusion.

■ Which generation is my indemnity insurance? First, you need to check the generation of the indemnity insurance you are enrolled in. Earlier generations offered broad coverage by combining covered and non-covered services, but with each successive generation, co-payment rates have increased and non-covered items have been separated into optional riders. The previous generation, the 4th, featured high co-payments in exchange for lower premiums, but the structure was such that premiums would rise sharply the following year if non-covered services were used frequently.

■ What's different about 5th-generation indemnity insurance? The core of 5th-generation indemnity insurance is that non-covered items are divided into 'critical' and 'non-critical' categories, with different coverage designs. • Critical non-covered services (cancer, cerebrovascular disease, etc.): The existing co-payment rate is maintained, and a new annual co-payment cap has been introduced, which actually reduces the financial burden in the event of a serious illness. • Non-critical non-covered services (manual therapy, extracorporeal shock wave therapy, non-covered injections, etc.): The co-payment rate has increased and the coverage limit has been reduced.

Therefore, if you do not visit the hospital often and want to focus on preparing for major illnesses, the 5th generation may be advantageous. On the other hand, if you regularly receive manual therapy or non-covered injections, it may be better to keep your existing indemnity insurance. Carefully examining these individual medical usage patterns is the first step in receiving a proper indemnity insurance recommendation.

■ Should existing subscribers switch no matter what? If you are a subscriber to an earlier generation of indemnity insurance, there is no need to rush to switch right away. A 'conversion support system' for early indemnity insurance subscribers is expected to be implemented soon, and premium benefits may vary depending on the timing of the switch. In addition, a system is in place that allows you to revert to your original insurance if you do not file a claim within a certain period after switching, so it is more reasonable to review your hospital usage patterns first rather than switching blindly.

When considering switching or newly signing up for insurance, you should not simply compare premiums. You should also review your recent hospital expenses. If you have frequently used manual therapy, non-covered injections, MRI scans, or other services, changes in coverage limits and co-payment rates can significantly affect your actual out-of-pocket costs. Comparing the coverage details and premiums of various insurers serves as a useful reference for finding the indemnity insurance recommendation that is right for you.

This renewal notice hike clearly demonstrates that indemnity insurance is not a 'sign up and forget' matter. As generations change and coverage structures evolve, periodically checking indemnity insurance recommendation information and reviewing whether your current insurance is still the right product for you is the most reliable way to reduce your medical expense burden.

[This article was written with the assistance of AI. It is based on currently publicly available information, and readers are advised to verify the facts once again.]