The Insurance Industry Betting on 'Untact and Non-Face-to-Face'... "Thirsty for Growth"

Photo by Asia Economy DB

[Asia Economy Reporter Oh Hyung-gil] Insurance companies are expanding non-face-to-face services following the COVID-19 pandemic. The insurance industry, which was mainly based on face-to-face sales between agents and customers, has undergone significant changes. The expansion covers various areas from the launch of non-face-to-face exclusive products to insurance enrollment, coverage analysis, and health management.

These non-face-to-face services vividly demonstrate the current development of 'InsurTech' (a combination of insurance and technology), which is considered the future of insurance, and insurance companies are putting their lives on the line in this area.

According to the insurance industry on the 9th, Kyobo Life Insurance provides mobile healthcare 'Health Coaching Service' free of charge for three years from the contract date to customers who purchase insurance. This is a 1:1 customized health promotion service based on an application, offering exercise measurement, health analysis, disease information, and consultation.

Additionally, Kyobo Healthcare operates for customers who subscribe to whole life insurance or CI insurance with a main contract of 70 million KRW or more. Through the health call center, consultation services with specialists in internal medicine, surgery, obstetrics and gynecology, and other fields are provided, along with a 14-week diabetes intensive management program.

Hanwha Life Insurance also launched a non-face-to-face health management service app called 'HELLO' in September last year. It analyzes 10 years of health checkup information and calculates biological age by converting health levels into age, sending weekly and monthly reports on health items.

Dongyang Life Insurance supports the healthcare service 'Angel Mom's Care' for child insurance subscribers. It distinguishes between mother and child, providing mothers with weight management and home training information, and delivering childcare information, temperature record management, and growth exercise programs to children.

ABL Life Insurance offers healthcare services to customers paying monthly premiums of 500,000 KRW or more. Professional counselors with nursing backgrounds provide health consultations over the phone. For internet insurance customers, 2,000 points are awarded when walking 150,000 steps in a month.

Insurance companies are strengthening various non-face-to-face services such as health status analysis, exercise and dietary coaching, and physical and psychological expert consultations. This trend is expected to expand further as mobile blood pressure measurement becomes available recently.

Online-exclusive products are also flooding the market. While mini-insurance covering only specific diseases dominated before, recently new products applying various themes to savings and protection insurance have appeared.

Hanwha Life's 'Life Plus Filial Travel Savings Insurance' provides funds for preparing filial travel as well as travel services and solutions. Monthly premiums start from 9,500 KRW, and if maintained for just one month, customers can receive more than the premiums paid.

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

There are also mini-insurances covering only specific diseases and urgent care such as breast cancer and stomach cancer. Chubb Life Insurance's 'Insurance Thinking Only About Breast Cancer' and 'Insurance Thinking Only 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.

The initial insurance premiums through online channels increased by 130.5% over four years, from 7.6 billion KRW in 2015 to 17.4 billion KRW last year. Due to the convenience of easy subscription via internet or mobile, interest is growing not only among people in their 20s and 30s but also middle-aged and older adults.

Purchasing insurance online leads to reduced business expenses, allowing customers to enjoy insurance services at relatively lower 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 the online channel.

However, unlike face-to-face sales by agents recommending products, customers choose products suitable for themselves, so it is advised to have a good understanding of insurance. It is also recommended to use 'Boheom Damoa,' an online insurance supermarket operated by the Life and Non-Life Insurance Associations, to compare premiums and coverage details of products by insurance companies.

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