Pet-related insurance has emerged as a battleground in this saturated insurance market. (Image supported by ChatGPT)
SEOUL, Oct. 7 (Korea Bizwire) — South Korea’s non-life insurers are escalating a fierce competition to secure “exclusive usage rights,” which grant temporary monopolies over newly developed insurance products, as the industry pushes for innovation amid slowing growth in traditional sectors such as auto coverage.
According to the General Insurance Association of Korea, domestic insurers filed 31 applications for exclusive rights in the third quarter of this year — a 138 percent increase from 13 a year earlier — already surpassing last year’s total of 26 and 2023’s 19. At the current pace, the figure could exceed the all-time high of 36 recorded in 2022.
Analysts say insurers are racing to capture niche demand in emerging areas such as dementia care and pet insurance, seeking to differentiate themselves in a saturated market.
KB Insurance in January became the first in the industry to offer coverage for the cost of Clinical Dementia Rating (CDR) assessments, winning exclusive rights for its innovation. Heungkuk Fire & Marine Insurance followed in September with a rider compensating family members for financial losses from missing dementia patients, also granted a six-month exclusivity period.
Pet-related insurance has also emerged as a battleground. DB Insurance obtained six- and nine-month rights for two products: one covering fines for dog-bite incidents and another reimbursing behavioral training costs for pets.
Lifestyle-oriented policies are expanding as well. Samsung Fire & Marine Insurance recently introduced a product that reimburses up to 30,000 won (US$22) in transportation costs when Seoul metropolitan subway delays exceed 30 minutes — a first for the industry.
“The surge in applications shows how insurers are responding to Korea’s aging population, growing pet ownership, and changing lifestyles,” an industry association official said. “Competition to create more tailored and socially relevant insurance products is only getting stronger.”
Ashley Song (ashley@koreabizwire.com)
