Improvements to Dementia Insurance Claims Process Expand to Cancer and Cardiovascular Policies

View of the Financial Supervisory Service located in Yeouido, Seoul. 2026.02.20[Photo=Yoo Dae-gil, dbeorlf123@ajunews.com]

Insurance policyholders suffering from dementia will find it easier to claim benefits, even if they forget their insurance status or cannot file claims themselves. The Financial Supervisory Service (FSS) announced significant improvements to the proxy claims system on June 29, which will now allow for the designation of 'anonymous proxy claimants' without the need for personal data consent. This change expands the system beyond dementia insurance to include cancer, brain, and cardiovascular insurance policies.

Currently, dementia insurance policyholders can designate a specific individual as a proxy claimant from their spouse or relatives within the third degree of kinship. However, the requirement for the proxy to provide personal data consent and submit various documents has made the process cumbersome, leading to ongoing criticism.

The designation rate for proxy claimants in dementia insurance has decreased from 26.0% in 2021 to 23.1% in the first half of this year. Concerns have been raised that as the number of dementia patients increases, more individuals may forget their insurance status and miss out on claiming benefits.

In response, the FSS is introducing the 'anonymous proxy claimant' system, which allows anyone who is a 'spouse or direct descendant' to claim benefits without prior designation of a specific individual. Since no personal data is collected, there is no need for a separate consent process.

To prevent financial fraud, however, benefits will be paid into the policyholder's account rather than the proxy claimant's account. If treatment costs arise, the system will allow for direct transfers from the policyholder's account to the hospital using the banking sector's 'Incapacitated Depositor System.'

The existing named proxy claimant system will also be simplified. Insurers will now standardize the collection of minimal information, such as names, contact details, identification numbers, and the relationship to the policyholder, while eliminating the need for consent regarding the review of insurance enrollment history, which some insurers previously required.

The scope of application will also be expanded. Currently, proxy claimant designation is only available for dementia insurance, but it will gradually extend to major critical illness products, including cancer insurance and insurance for cerebrovascular and cardiovascular diseases, in the second half of this year. The FSS plans to consider further expansions based on the results of the new system's implementation.

The improved system will take effect for new contracts starting July 1. Existing dementia insurance policyholders will also be informed about the new options, such as anonymous proxy claimant designation, through notifications from their insurers.

The FSS emphasized, "Insurance is a system designed to prepare for unexpected future incidents, so it is essential to designate a proxy claimant to ensure benefits can be accessed even if the policyholder forgets their insurance status due to dementia. We urge policyholders to inform their designated proxies, such as spouses or children, to facilitate the claims process when needed."

* This article has been translated by AI.