Jeonbuk Province Strengthens Support for Small Business Owners with Wind and Flood Insurance

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Jeonbuk Province announced on the 17th that it encourages small business owners to subscribe to insurance so that they can benefit from actively promoting this year's changes, such as an increase in government subsidies for premiums paid for flood and windstorm insurance and the relaxation of compensation standards.

'Pungsuhae Insurance' is a policy insurance that pays actual compensation when property damage occurs to houses, greenhouses, stores, etc. due to unexpected natural disasters such as typhoons, floods, heavy snow, and earthquakes.

This insurance is a system that compensates for damage caused by natural disasters such as typhoons, heavy rain, and earthquakes with affordable premiums, and more than half of the premiums that the insured must pay are subsidized by the government or local governments.

Support for small business owners for pungsuhae insurance was piloted in some areas since 2018, but with nationwide expansion starting this year and the government subsidy rate increased from 25% to 50%, the individual burden has been reduced from 66% to 41%.

The credit guarantee fee for small business owners subscribing to pungsuhae insurance has also been lowered from 1.2% to 0.8%, and some policy fund interest rates have been reduced by 0.1%P, so active promotion and subscription are encouraged for small business owners.

Also, tenants of commercial buildings used to receive differentiated insurance payments according to the flood height when the store was flooded, but from this year, compensation can be increased regardless of the flood height.

The method of subscribing to pungsuhae insurance is the same as general insurance, and individual subscription is possible through planners of five insurance companies including NH Nonghyup Insurance, Dongbu Insurance, Hyundai Marine & Fire Insurance, Samsung Fire & Marine Insurance, and KB Insurance, and it is easy to apply for subscription through city/county/district offices or mobile and internet.

A Jeonbuk Province official said, “We will actively promote so that residents can easily understand the pungsuhae insurance policy,” and added, “We hope that people can prepare for unexpected natural disasters at an affordable cost.”

This content was produced with the assistance of AI translation services.