SEOUL, March 24 (Korea Bizwire) — The new coronavirus outbreak in South Korea has resulted in the rise of insurance subscriptions through online channels.
Thanks to the ease of subscribing to insurance plans on the Internet or via mobile devices, the interest of the middle-aged as well as those in their 20s and 30s has increased recently.
The number of hits at the insurance comparison site Insurance Damoa averaged 186,673 per month in the January to February period, up 58 percent from a monthly average of 114,380 per month last year.
The site was created in 2015 and supervised by the Financial Services Commission, and is operated by the General Insurance Association of Korea and the Korea Life Insurance Association.
Online insurance has lower business costs, so one can enjoy insurance services with relatively low premiums.
The policy persistency rates, an indicator of consumer satisfaction, including the 13th and 25th payment indices showed 90 percent and 85 percent, respectively.
The initial insurance premium for online channels increased 130 percent in four years from 7.6 billion won (US$6.04 million) in 2015 to 17.4 billion won last year, showing rapid growth.
Most of the existing online insurance policies were for mini-insurance plans that only covered certain diseases such as breast and stomach cancer.
Recently, however, new types of products have been introduced offering additional savings and guarantees.
When subscribing to online insurance, it is essential to understand the plan because customers have to choose the right product for themselves, unlike face-to-face channels that insurance brokers recommend.
Subscribers should view the product manual containing the terms and conditions of the agreement and the warranty required by the product and have to accurately compare the warranty content of the product with that of the principal without assistance from a broker.
Due to the nature of online products, insurance premiums are designed as cheaply as possible, so there are no or fewer refunds on termination.
Ashley Song (firstname.lastname@example.org)