Insurance Cancellations Rise as Stock Investing Draws More Attention

Insurance contracts canceled shortly after purchase or surrendered midway increased in the second half of last year. According to the life insurance industry on the 13th, the withdrawal rate for cancer insurance applications from July to December reached 12.02%, up 3.55 percentage points from 8.47% a year earlier. Whole life insurance withdrawals also rose from 7.73% to 8.78%. In non-life insurance, accident insurance increased from 5.30% to 5.92%, while disease insurance rose from 4.26% to 4.84%. The withdrawal rate refers to the share of new contracts canceled within one month of application. Analysts cite weaker domestic demand, heavier perceived premium burdens, and, in some views, investors redirecting premium money into a booming stock market. Source: rss.donga.com