Lim Jong-ryul, (ImChairman of Finance is explaining how to buy insurance through ‘Insurance Damoa’ to actor and singer Lim Si-wan. (Image : Yonhap)
SEOUL, Dec.3 (Korea Bizwire) – Second-tier car insurance companies will launch plans that can be purchased online, starting from January 1.
Since the internet insurance supermarket known as Insurance Damoa officially opened on November 30, the competition to draw clients online is increasingly fierce.
According to industry analysts, Hyundai Marine & Fire Insurance will launch an online-only car insurance option on January 1. Although it is a holiday, considering that there is no such thing as a holiday for online clients, Hyundai will not postpone the release.
Meritz Fire & Marine Insurance is also launching an online marketplace, with its Meritz Direct portal opening on January 4. Insurance plans can be purchased online, and all of the procedures required to sign up for insurance can also be completed through the website.
Second-tier insurance companies are releasing online-only products with great urgency in fear that they might drift further away from Samsung Fire & Marine Insurance, the top insurance company in the industry, with the launch of the Insurance Damoa portal.
Insurance Damoa is a website where clients can purchase different insurance plans. A total of 13 indemnity insurance companies and 20 life insurance companies are currently selling 217 different plans, and consumers can compare the prices and features before they make purchasing choices.
For the time being, Samsung Fire Insurance is the only indemnity insurance company to release an all-online insurance product on Insurance Damoa. Purchasers of plans from other indemnity insurance companies have to finalize their purchases by speaking to a company representative over the phone, even though the purchase itself can be made online.
As a result, the companies that have yet to offer an all-online solution are at a competitive disadvantage, and their costs cannot but go up due to additional manpower requirements if they choose to compete and offer similar solutions.
Industry watchers expect that with the launch of the Insurance Damoa site, the market share of Samsung Fire Insurance will become larger than its current 25 percent share.
They add that because Insurance Damoa lists insurance plans by price, Samsung Fire Insurance’s products have an advantage because they have the lowest prices, and as such are bound to be listed at the top. Analysts emphasize that second-tier companies should narrow the gap between themselves and Samsung Fire Insurance before Insurance Damoa establishes itself as the main source of insurance online. It is expected that competition in the online market will intensify.
By Lina Jang (linajang@koreabizwire.com)
