North Korean outbound tourists offered new insurance
North Korea’s state insurance monopoly is now offering a travel insurance policy for citizens travelling overseas, but will sanctions complicate policy administration?
The Korea National Insurance Company (KNIC), which is subject to international financial sanctions, is a Democratic People’s Republic of Korea (DPRK) financial and insurance company, which has historically provided fishing rights and insurance policies to foreign vessels.
Now, in the wake of an increase in the number of North Korean citizens travelling to Russia and China, KNIC has launched its travel insurance offering, which reportedly covers physical injuries sustained on overseas trips.
NK News reports that cover begins “from the moment the traveller boards transportation to leave the country and ends when they disembark on return”, although no details were disclosed on premiums, excesses, or maximum benefits.
NK News also reported that foreign citizens living in North Korea were allowed to purchase a policy.
Practicalities of providing international medical assistance
While this would initially seem straightforward as an insurer launching a new policy, it is the sanctions from the US, European, and Asian financial authorities that complicate the administration of said policy.
A North Korean insured needing treatment in a foreign hospital necessitates a chain reaction from the international medical assistance ecosystem. These reactions include:
- Issuing a guarantee of payment
- Paying the hospital
- Arranging medical assistance
- Organising an ambulance or repatriation
- Potentially engaging another insurer/reinsurer
- Settling the eventual claim.
Companies subject to relevant sanctions regimes may be prohibited from providing services to, receiving money from, or making payments involving KNIC unless an exemption or licence applies.
Therefore, with information being limited about the policy itself, questions remain about the KNIC’s assistance capabilities and ability to pay claims internationally.
Understanding how international payment sanctions affect the international travel insurance sector is key to ensuring a smooth patient experience.