Getting Car Insurance Quotes on Naver?…Complex Calculations for Non-Life Insurers

Compare Insurance Premiums at a Glance by Insurer

Samsung Fire & Marine Insurance, Market Share Leader
Will It Lose Market Dominance?

Intense Platform Competition in Insurance Industry
Controversy Over 11% Entry Fee Demand

[Asia Economy Reporter Oh Hyung-gil] Property and casualty insurance companies are facing complex calculations over Naver Financial's car insurance comparison quote service, scheduled to launch in September. They are deeply considering whether to partner early or keep their distance to maintain market dominance.

According to the insurance industry on the 21st, property and casualty insurers are busy preparing countermeasures for Naver Financial's car insurance comparison quote service. The comparison quote service compares insurance premiums by insurer based on the driver's subscription conditions and introduces the cheapest insurer.

This is similar to comparing airfare or accommodation fees. The more insurers they attract to their platform, the greater the market influence, making partnerships with insurers crucial.

The problem lies in the uniqueness of the domestic car insurance market. The domestic car insurance market, approaching 18 trillion won in gross premiums written, is a de facto oligopoly where the 'Big 4' companies have held over 80% market share for decades. This means the success potential of Naver Financial is extremely low without these four.

For now, the conditions for smooth sailing are in place. Negotiations with Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance among the Big 4 have reportedly progressed considerably, while talks with Samsung Fire & Marine Insurance are facing difficulties.

Samsung Fire & Marine Insurance, the market leader in car insurance, has been growing the online car insurance market ahead of others since launching direct car insurance in 2009. The biggest reason the cooperation with Kakao and the establishment of a digital insurance company, pursued until the first half of this year, fell apart was reportedly due to differing positions on entering the car insurance market, showing Samsung Fire's strong attachment.

There is no choice but to feel concerns that Samsung Fire Direct could lose its market dominance after entering the Naver platform.

KB Insurance is also reportedly in a difficult internal position. As KB Financial Group actively promotes the fintech industry at the group level and competes with Naver in banking and credit sectors, KB Insurance finds it burdensome to actively pursue cooperation with Naver. However, they intend to maintain a partnership with Naver and observe future market trends.

Hyundai Marine & Fire Insurance and DB Insurance are relatively more likely to collaborate with Naver. They perceive the emergence of a new platform as an opportunity to establish cooperative relationships and explore future business expansion possibilities. They have already partnered with Kakao Pay.

Meanwhile, controversy has erupted as Naver Financial demands an 11% advertising commission on insurance premiums from insurers for the comparison quote service.

This rate is higher than the commission paid to insurance agents, which insurers argue is excessive and could lead to premium increases. They appear uncomfortable with the demand for entry fees from the early stages of the business.

An industry insider said, "No one expected corporate agencies (GA) to gain such influence when they first appeared," and pointed out, "It is questionable whether it is fair for Naver, considered the 'top of the top,' to collect advertising fees without clear standards or notices."

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