Changed Chuseok Holiday Due to COVID-19... Travel Insurance Subscribers Down 87%

Travel Insurance Subscribers Plummet from 350,000 to 43,000 During Last Year's Chuseok Amid Sharp Decline in Overseas Travel Demand
Assemblyman Hong Seong-guk: "Mature Civic Awareness Reduces the Riskiest Overseas Travel Demand"

On the 28th, two days before the Chuseok holiday, the domestic terminal at Gimpo Airport in Gangseo-gu, Seoul, is bustling with travelers. Photo by Moon Honam munonam@

[Asia Economy Reporter Kangwook Cho] Due to the impact of the novel coronavirus infection (COVID-19), the number of people staying at home during this year’s Chuseok holiday increased, leading to a sharp decline in travel insurance subscriptions.

According to data on the 'Travel Insurance Subscription Status During Holiday Periods Over the Past 5 Years' submitted by the General Insurance Association to Hong Seong-guk, a member of the National Assembly’s Political Affairs Committee from the Democratic Party of Korea, the number of travel insurance subscribers, which exceeded 350,000 during last year’s Chuseok, dropped by 87% to around 44,000 this year.

Travel insurance provides coverage for accidents or losses that may suddenly occur during travel, and it is especially popular among those traveling abroad. During holiday periods, with family gatherings and domestic and international travel, the number of travel insurance subscribers has steadily increased.

Looking at the number of travel insurance subscribers and premium income during the Chuseok holiday over the past five years: 175,000 subscribers with 7.9 billion KRW in 2015; 195,000 subscribers with 9.6 billion KRW in 2016; 317,000 subscribers with 12.8 billion KRW in 2017; 325,000 subscribers with 13.3 billion KRW in 2018; and 358,000 subscribers with 13.3 billion KRW in 2019, showing a steady rise.

However, the number of travel insurance subscribers, which had surged, plummeted to 44,000 this Chuseok. Insurance premiums also halved from 13.3 billion KRW last Chuseok to 7.7 billion KRW this year.

In the case of Samsung Fire & Marine Insurance, which holds the largest market share in travel insurance, 250,000 people had subscribed and premium income reached 12.9 billion KRW as of this year’s Seollal holiday. But this Chuseok, the number of subscribers dropped sharply to 36,000, with premium income falling to 7.7 billion KRW.

Under normal circumstances, the number of travel insurance subscribers would have increased during this Chuseok holiday as well. However, in the face of the unprecedented crisis of COVID-19, a national consensus has formed that domestic travel as well as overseas travel could trigger a resurgence of COVID-19. In line with this sentiment, it is interpreted that people decided to refrain from traveling not only to their hometowns but also domestically during this Chuseok.

Assemblyman Hong said, “Overseas travel has significantly decreased due to mature civic consciousness,” and added, “I earnestly ask the public to once again remember that the only way to protect our society and our families from COVID-19 is to minimize movement and contact.”

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