Insurance industry to offer free fall-injury coverage, dementia liability policies to vulnerable elderly

South Korea's insurance industry will begin offering free fall-injury treatment coverage and dementia liability insurance to vulnerable elderly people starting next year. The initiative, funded through the insurance sector's mutual-benefit fund at a total cost of 10.5 billion won ($7.82 million), is expected to benefit about 650,000 people.

The Financial Services Commission, the Ministry of Health and Welfare, the insurance industry, the Korea Foundation for the Support of Vulnerable Elderly and the National Center for Lonely Elderly signed an MOU Monday on integrated support for vulnerable senior citizens.

Under the agreement, the insurance sector's mutual-benefit fund will provide vulnerable elderly people with layered financial and non-financial support — including coverage for fall-related medical costs, free dementia liability insurance and healthcare services.

Specifically, the insurance industry will support about 570,000 vulnerable people aged 65 and older with fall-injury treatment subsidies, tailored financial education such as voice-phishing prevention, healthcare services including health consultations and medication guidance, and health management programs.

Linked to the government's customized elderly care service, the program will cover treatment and recovery costs for fall-related injuries — bruises, sprains and fractures — on a sliding scale based on the severity of physical harm.

Financial regulators said the program focuses on timely early treatment to prevent physical deterioration, noting that hip fractures in older adults can shorten life expectancy. Beneficiaries can apply for reimbursement at the National Center for Lonely Elderly after receiving treatment and obtaining a diagnosis certificate and receipt from a hospital or clinic, or have their assigned care worker apply on their behalf.

To support the day-to-day health of vulnerable seniors, nurses and other medical professionals with at least five years of experience at university hospitals will provide telephone consultations, health checkup result analyses, medication guidance and customized diet recommendations for chronic conditions such as hypertension and diabetes.

The insurance industry will also provide free dementia liability insurance to vulnerable people with dementia, covering damages they may unintentionally cause to third parties — whether bodily injury or property damage. The Korea Foundation for the Support of Vulnerable Elderly will handle beneficiary screening and program operations, and plans to select about 80,000 eligible recipients from among registered dementia patients based on income level and other criteria.

Both the elderly care-linked program and the free dementia insurance program will finalize detailed plans and select service providers in the fourth quarter of this year, with operations running for two years starting in 2027.

Monday's signing ceremony was attended by FSC Chairman Lee Eok-won, Minister of Health and Welfare Jeong Eun-kyeong, Korea Life Insurance Association Chairman Kim Cheol-ju, Korea Non-Life Insurance Association Chairman Lee Byeong-rae, Samsung Life Insurance CEO Hong Won-hak, Kyobo Life CEO Cho Dae-gyu, Hyundai Marine & Fire Insurance CEO Lee Seok-hyeon and KB Insurance CEO Ku Bon-wook.

In his opening remarks, FSC Chairman Lee said that while insurance is an important safety net underpinning society — going beyond a simple financial product — many of those who need protection most urgently are unable to access its benefits.

He went on to say the initiative "reaches places that finance alone could not, through the on-the-ground network of welfare services, and fills gaps that welfare alone could not cover, through the protection of insurance — making the social safety net denser and more attentive."

Meanwhile, the insurance industry has also been rolling out free mutual-benefit insurance products in partnership with local governments since last month, aimed at supporting small business owners exposed to various risks such as illness and accidents.