[2026 National Assembly Audit] Despite Typhoons and Torrential Rain... 5,624 Storm and Flood Insurance Claims Denied in Five Years

NH NongHyup Property & Casualty Insurance Records the Most Denied Claims, at 2,717; 107 Dispute Mediation Applications
Opposition Rep. Park Seonghun: "Reasons for Denials and Dispute Cases Must Be Closely Reviewed"

More than 5,600 claims under storm and flood insurance, whose premiums are subsidized by the central and local governments, were denied over the past five years. Since the policy is designed to protect against damage from natural disasters such as typhoons and torrential rain, observers say authorities should closely review not only efforts to expand enrollment but also the claims payment process after disasters occur.

A low-lying area in Yeoncho-myeon, Geoje, was submerged by rising water on the 17th after torrential rain battered southern Gyeongsangnam-do, causing flooding in parts of Geoje and Tongyeong. Yonhap News Agency.

According to data submitted by the Financial Supervisory Service to Rep. Park Seong-hun of the People Power Party, a member of the National Assembly's Political Affairs Committee, claims filed under storm and flood insurance with seven non-life insurers—Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance, Hanwha General Insurance, and NH NongHyup Property & Casualty Insurance—from 2022 through July 2026 totaled 29,503, including claims still under review. Of these, 5,624 were denied.

Storm and flood insurance is a government-backed policy that compensates for property damage caused by natural disasters such as typhoons, floods, heavy rain, strong winds, heavy snow, and earthquakes, with the central and local governments subsidizing part of the premiums. Eligible properties include homes, greenhouses, and small business stores and factories. The government subsidizes at least 55% of premiums.

The number of denied claims exceeded 1,000 each year: 1,148 in 2022, 1,363 in 2023, 1,489 in 2024, and 1,133 in 2025. A further 491 claims were denied through July this year.

NH NongHyup Property & Casualty Insurance recorded the most denied claims, with 2,717, accounting for about 48.3% of the total. DB Insurance followed with 1,326, then Samsung Fire & Marine Insurance with 727, Hyundai Marine & Fire Insurance with 518, and KB Insurance with 302. Meritz Fire & Marine Insurance and Hanwha General Insurance recorded 22 and 12, respectively.

The total amount paid out was also substantial. From 2022 through July this year, insurers paid 21,570 claims totaling about KRW 190.1 billion under storm and flood insurance. In 2024, when large-scale natural disasters caused extensive damage, 4,951 claims were paid, totaling KRW 96.2 billion—the highest payout in the past five years.

Disputes over insurance payouts also continued. During the same period, the Financial Supervisory Service received 107 applications for dispute mediation related to storm and flood insurance. There were 37 applications in 2025, the highest annual total in the past five years. Of these, seven were accepted in whole or in part, while 15 were resolved through agreements reached before mediation or other means.

The amount of compensation secured through consumer redress also increased. Last year, it reached about KRW 957.71 million, more than nine times the approximately KRW 97.82 million recorded in 2024.

Rep. Park said, "Storm and flood insurance is a policy insurance program through which the state even subsidizes premiums to help people who have lost their homes and livelihoods to typhoons and torrential rain get back on their feet. The government should not stop at increasing enrollment; it should closely examine the reasons claims are denied and cases involving disputes to ensure that people do not face difficulties with the claims payment process when disasters actually occur."

This content was produced with the assistance of AI translation services.