'Contactless'... Emerged as a New Insurance Culture After the COVID-19 Crisis

On the 29th, ahead of the golden holiday, the domestic terminal of Gimpo Airport in Gangseo-gu, Seoul, is bustling with passengers. Photo by Moon Honam munonam@

[Asia Economy Reporter Oh Hyung-gil] Since the outbreak of the novel coronavirus disease (COVID-19), insurance companies that have expanded non-face-to-face services are expected to find new growth engines. Although the traditional practice of face-to-face sales centered on agents cannot be broken all at once, non-face-to-face sales are anticipated to establish themselves as a new alternative.

According to the insurance industry on the 30th, as social distancing spread due to the COVID-19 situation, the non-face-to-face system is rapidly spreading within the insurance sector as well.

Samsung Fire & Marine Insurance introduced a simple authentication system using PIN numbers on its website starting in March. With this simple authentication, tasks such as simple contract changes can be handled. Customers who have purchased automobile insurance can process more than 90% of contract change tasks online.

Additionally, the company expanded its Smart Link service, which allows convenient use of its app or website services through mobile links. This service includes links in KakaoTalk notification messages or text messages sent to customers, enabling direct access to desired services. As a result, tasks that were previously handled by meeting customers or via phone calls can now be processed through non-face-to-face mobile channels.

Non-face-to-face methods are also spreading in corporate social contribution activities and internal events. Hanwha Life combined the concept of non-face-to-face in its social contribution activities by providing hygiene products including masks and hand sanitizers, health foods, play tools such as origami and coloring books, groceries, and daily necessities to welfare organizations nationwide.

Shinhan Life Insurance also held the 30th Sales Awards Ceremony via real-time mobile broadcasting while insurance agents attended their respective branches, marking a first in the domestic insurance industry.

DB Insurance launched a service last month that allows customers and repair shops to consult via high-definition video calls, the first of its kind in the insurance industry.

In the event of a simple accident, a claims expert communicates with the customer via video call to assess the accident scene and provide consultation. This reduces the time claims staff spend traveling to the scene for simple accidents and helps alleviate traffic congestion caused by accidents. The video call service is also used to check the extent of damage to vehicles brought in for repairs.

Hyundai Marine & Fire Insurance plans to conduct online artificial intelligence (AI) interviews starting with the recruitment of new employees at the 6th grade (junior college graduate) level this year. The first face-to-face interview, previously conducted by interviewers at the training center, has been replaced with a non-face-to-face AI interview using an online platform. Applicants who pass the document screening can participate in the online interview using their own PC or laptop without restrictions on time or location.

Carrot General Insurance recently introduced the ‘Carrot Phone Care Screen Protection Insurance,’ which incorporates contactless AI video recognition technology. Customers can sign up without visiting offline by uploading a video that captures the serial number and exterior of the phone they wish to insure. The AI automatically scans the video and checks for damage to proceed with the insurance subscription process.

There are also calls within the insurance industry to prepare in advance for the untact (contactless) insurance era following COVID-19.

Shin Chang-jae, Chairman of Kyobo Life Insurance, emphasized, "Even after COVID ends, consumers accustomed to digital trends will not return to past consumption patterns. We must accelerate non-face-to-face sales activities using digital tools, discover new business models, and quickly prepare for the new world that COVID will bring."

An insurance industry official said, "Along with the impact of social distancing due to COVID-19, the application of Fourth Industrial Revolution technologies such as artificial intelligence (AI) and big data to insurance services, which has been advancing for several years, will accelerate further."

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