"Attention on Easy and Affordable Online Insurance After the COVID-19 Crisis"

[Asia Economy Reporter Oh Hyung-gil] Due to the spread of the novel coronavirus infection (COVID-19), insurance enrollment through non-face-to-face online channels is gaining attention.

As the number of subscribers through online channels increases due to affordable premiums and simple enrollment procedures, insurance companies are also expanding customer choices by offering various products.

According to the Life Insurance Association on the 28th, the initial premium through online channels increased by 130.5% over four years, from 7.6 billion KRW in 2015 to 17.4 billion KRW last year. Because it is easy to enroll via the internet or mobile, interest is rising not only among people in their 20s and 30s but also among middle-aged and older adults.

Insurance enrollment through online channels leads to reduced business expenses, allowing customers to enjoy insurance services at relatively low premiums. Looking at the contract retention rate, an indicator of customer satisfaction, the online channel recorded over 90% at the 13th installment and over 85% at the 25th installment as of 2017. This indicates very high satisfaction with online channels.

While mini-insurance that only covers specific diseases has dominated so far, recently new products applying various themes to savings-type and protection-type insurance have been introduced.

Hanwha Life's savings-type insurance, "Life Plus Filial Travel Savings Insurance," provides everything from funds preparation for filial travel to travel services and solutions. Monthly premiums start at 9,500 KRW, and if maintained for just one month, you can receive more than the premiums paid.

Heungkuk Life's protection-type insurance, "Online Deulsum Nalsum Health Insurance," is a non-maturity refund insurance that covers ear, nose, and respiratory diseases for men at 1,500 KRW and women at 1,100 KRW.

There are also mini-insurance products that cover only specific diseases and urgent treatments such as breast cancer and stomach cancer. Chubb Life Insurance's "Insurance Only Thinking About Breast Cancer" and "Insurance Only Thinking About Stomach Cancer" have annual premiums of 6,370 KRW and 10,200 KRW respectively for 30-year-old women. Upon confirmed diagnosis of breast cancer, a one-time payment of 5 million KRW is made, and for stomach cancer, a one-time payment of 30 million KRW is provided.

Online insurance products can be subscribed to by accessing each insurance company's website, and product comparisons by company are also possible through the online insurance supermarket "Boheom Damoa." Personal authentication via a certified certificate is required instead of a handwritten signature.

Unlike face-to-face sales by agents recommending products, customers select products suitable for themselves, so it is important to have a good understanding of insurance.

It is also advisable to use Boheom Damoa, an online insurance supermarket jointly operated by the Life and Non-life Insurance Associations, to compare premiums and coverage details of products by insurance company.

A Life Insurance Association official said, "Due to the nature of online products, premiums are designed to be as low as possible, so most are non-refundable or have low surrender values upon early termination, so caution is needed."

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