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제목 Korea’s online insurance market quintuples in size in just 4 years

In 2016, the aggregate value of products sold online by Korean non-life insurers reached KRW 2,210.7 billion, up 51% from the previous year. This is almost five times larger than KRW 423.5 billion in 2012. Accordingly, the share of online sales in total non-life insurance sales nearly tripled from 0.82% to 2.61% during the four-year period.

Similarly, life insurance sales on the internet almost quintupled from KRW 1.88 billion in 2012 to KRW 9.27 billion in 2016, which accounted for 0.084% of the total, a tenfold jump from 0.008% four years ago.

The above figures indicate that non-life insurers are selling more products online than their life counterparts. This is largely because the sale of non-life policies such as auto insurance is relatively active on the internet compared to life products, most of them still being sold through faceto-face channels.

The biggest weapon that online insurance has is price competitiveness. With low business expenses involved, prices online are up to 53% lower than offline. In
particular, some savings-type products on the internet offer a high interest rate of 3% on a yearly basis.

Yet, there is always a downside. Since those who want to buy insurance online should select coverage types and calculate premiums by themselves, this non face-to-face channel may not be suitable for products that require comprehensive consultation on planning with regard to coverage.

 

 
 
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