Samsung Fire & Marine Insurance Obtains Exclusive Usage Rights for 'Biz & Safety Partner' (Comprehensive)

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[Asia Economy Reporter Ki Ha-young] Samsung Fire & Marine Insurance has been granted an exclusive license for 6 months for the first-ever special contract compensating business interruption caused by natural disasters and a special contract covering attorney fees for occupational negligence causing injury or death.

According to the industry on the 8th, Samsung Fire & Marine Insurance recently received exclusive usage rights for 6 months (2020.12.3~2021.6.2) from the New Product Review Committee of the General Insurance Association for two new risk coverages under its business property insurance 'Biz & Safety Partner.'

The special contract compensating business interruption due to natural disasters is one of them. This industry-first special contract compensates up to 100,000 KRW per day if a store is closed due to not only fire but also natural disasters, collapse, subsidence, landslides, on-premises explosions, or ruptures. The special contract covering attorney fees for occupational negligence causing injury or death also obtained exclusive usage rights. This contract compensates the actual costs incurred for hiring a lawyer if a person is detained or prosecuted for causing bodily injury to others due to occupational negligence.

Last month, Samsung Fire & Marine Insurance launched 'Biz & Safety Partner,' a property insurance that simultaneously covers property damage, liability, and employee-related protection. The insurance premium is applied according to the type of business the customer actually operates. This insurance operates a fire damage (actual loss) special contract that compensates the actual loss within the insured limit if damage occurs due to fire accidents. The maximum insured limit is 2 billion KRW, more than twice the limit of existing property insurance. Additionally, in response to the recent increase in food delivery, the coverage scope has been expanded to cover liability for property damage such as damage to customers' clothes or bags caused by poor packaging after delivery.

Earlier, in September, Samsung Fire & Marine Insurance obtained a 3-month exclusive usage right for the first-ever influenza (flu) treatment expense coverage special contract in the industry. This product compensates up to 200,000 KRW once if diagnosed with the flu and prescribed antiviral medication directly for flu treatment. Within three weeks of launch, 12,000 cases were sold, with the flu treatment expense special contract subscription rate exceeding 94% among them.

Exclusive usage rights, a kind of 'patent'... Advantage in sales and marketing

Exclusive usage rights are a kind of patent system for insurance products. The New Product Review Committee of the Life and Non-life Insurance Associations grants exclusive product sales rights for a certain period to insurers who develop creative insurance products for consumers. Typically, they evaluate originality, progressiveness, and usefulness to grant an exclusive period of 3 to 9 months.

As product competition intensifies, insurers are securing exclusive sales rights through exclusive usage rights and using this to gain an advantage in sales and marketing strategies. This year, life insurers have obtained exclusive usage rights for a total of 5 products, and non-life insurers for 16 products.

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