SEOUL, Sept. 19 (Korea Bizwire) — An increasing number of South Korean consumers are buying auto insurance online in search of lower premiums and more convenience, an industry think tank said Tuesday.
According to the Korea Insurance Development Institute, 20.5 percent of the nation’s 15.4 million car insurance policyholders filed their applications through cyber marketing channels, such as smartphones and computers, as of end-June.
The percentage was up from 15.5 percent a year earlier. Of the online subscribers, 69.4 percent purchased insurance via computers, with the remainder applying through smartphones.
In particular, the number of mobile applicants increased 2.3 times over the cited period to 970,000.
In contrast to the jump in applications through cyber marketing tools, the ratio of offline applications dropped 2 percentage points over the one-year period, with the figure for telemarketing subscriptions sinking 3 percentage points.
The think tank said more motorists are turning to cyber marketing channels for insurance, which offer lower premiums and are more convenient.
“Cyber marketing channels have succeeded in attracting auto insurance buyers thanks to their lower costs and convenience,” said Sung Dae-gyu. “It is necessary for financial authorities and the insurance industry to actively tackle deregulation to boost the sector further.”