As South Korea enters a super-aged society, the demand for care services is rapidly increasing, prompting life insurance companies to expand their nursing facilities and senior housing services. These companies are broadening their scope beyond selling insurance products to include facility operations and senior living arrangements, ensuring support for aging individuals.
According to the insurance industry on August 27, KB Life operates eight facilities through its subsidiary, KB Golden Life Care, including the Wirye and Eunpyeong Care Centers, as well as the Wirye, Seocho, Eunpyeong, Gwanggyo, and Gangdong Villages, and Pyeongchang County.
Shinhan Life runs the Bundang Day Care Center and 'Solarche Home Misa.' Samsung Life operates Samsung Noble County, while KDB Life manages the Goyang Day Care Center. Hana Life has also established a subsidiary, Hana The Next Life Care, and plans to begin operating nursing facilities in the second half of next year.
The entry of life insurance companies into this market is driven by rapid aging and a shortage of care facilities. According to the National Health Insurance Service and Statistics Korea, the long-term care recognition rates for those aged 75-79 is 11.96%, 26.50% for those aged 80-84, and 45.43% for those aged 85 and older, indicating a significant increase with age. The population aged 75 and older is projected to rise to 9.89 million by 2040 and 11.53 million by 2050.
The Korea Institute for Health and Social Affairs estimates that by 2030, approximately 148,000 individuals will be unable to access necessary care services, with about 40% of this population located in the metropolitan area, including 29,458 in Seoul and 30,072 in Gyeonggi Province.
In addition to facility operations, life insurance companies are also offering products that cover dementia diagnosis fees, long-term care and home care benefits, and caregiver usage allowances. They have introduced reverse mortgage whole life insurance that allows policyholders to receive death benefits as retirement living funds.
Industry experts suggest that to increase the supply of urban nursing facilities, it is essential to allow land and building leasing under conditions that ensure resident housing stability and service quality, as well as to expand non-covered service items.
* This article has been translated by AI.
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