Leisure and Golf Insurance 'On Edge' Amid COVID-19 Resurgence

[Asia Economy Reporter Oh Hyung-gil] As outdoor activities increase, insurance companies have been launching leisure and golf insurance products one after another, but they are struggling with sales due to the resurgence of COVID-19.

Although these products are highly vulnerable to insurance fraud, the strategic choice to attract even one more customer is not easily translating into results.

According to the insurance industry on the 15th, Samsung Fire & Marine Insurance added a golf special rider to driver insurance and accident insurance in March and started selling them. They cover hole-in-one costs of 3 million KRW and 2 million KRW respectively. This is larger compared to most other insurers who cover 1 million KRW.

A notable point is that the cost of a second hole-in-one is also covered equally. If a player records two hole-in-ones, they can receive up to 6 million KRW. Additionally, it includes 5 million KRW for albatross costs, 5 million KRW for injury treatment support from golf cart accidents, and 3 million KRW for golf equipment damage. However, despite the generous coverage, sales performance is reported to be less than expected, possibly because it was launched during the peak severity of COVID-19.

In April, as COVID-19 gradually showed signs of subsiding and the number of people engaging in outdoor activities noticeably increased, non-life insurers introduced related products one after another.

KB Insurance launched the 'T map Life Driver Insurance' last month, adding special riders covering leisure activity sequelae, golf equipment damage, and hole-in-one and albatross coverage. It is structured to link automobile driving and leisure activities.

MG Insurance also introduced a 'One-day Golf Insurance' costing 3,500 KRW per day in the same month. It covers injury death (100 million KRW) during golf, as well as sequelae and liability. It also compensates 1 million KRW for hole-in-one costs. Carrot Insurance launched accident insurance covering over 20 leisure activities including golf, swimming, soccer, and hiking, aiming to attract customers planning various leisure activities.

However, shortly after social distancing measures shifted to everyday quarantine, the COVID-19 outbreak originating from Itaewon showed signs of spreading again, causing difficulties in selling leisure and golf insurance products offered by non-life insurers.

In particular, golf insurance is prone to high loss ratios due to the high possibility of insurance fraud. When a hole-in-one is made, the player often treats companions to meals or covers some rounding costs, and insurance payments are made upon submission of the golf course's hole-in-one certificate and meal receipts. In November last year, a court sentenced a man in his 30s to prison for fraudulently claiming insurance by faking a hole-in-one.

An official from the non-life insurance industry said, "There is a demand from customers who want to add golf riders when subscribing to comprehensive insurance," but added, "Although social distancing has shifted to everyday life, the atmosphere is still reluctant toward leisure activities where people gather, so sales are not smooth."

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