Credit Information Service Publishes CIS Report... "Insurance Sales Contracted Due to COVID-19"

Insurance Sales Activity Index Trend. Data from Korea Credit Information Services

[Asia Economy Reporter Song Seung-seop] According to an analysis of the first half of this year’s sales status using the insurance sales activity index independently developed by the Credit Information Service (CIS), insurance sales have contracted compared to the previous year.

According to the CIS report published on the 30th, the insurance sales activity index for the first half of this year recorded an average of 99 points. This is a decrease from the average of 101 points in the second half of last year and 103 points during the same period a year ago. In particular, the activity index dropped to 96 points early this year when COVID-19 cases surged.

The insurance sales activity index is a figure created using four insurance contract information items concentrated at the Credit Information Service (new contract count, number of coverages, initial insurance premium per coverage, and payment period). It indicates whether insurance sales this month were more active or contracted compared to the same period last year. The baseline is 100 points; the higher the score, the more active the insurance sales, and the lower the score, the more contracted the sales.

The report analyzed that non-life insurance sales activities in January and February tended to contract more compared to life insurance and mutual aid. This trend recovered to a similar level in the second quarter.

Sales activities through the bancassurance channel were more active than sales through agents or agencies, and despite restrictions on face-to-face sales activities, sales efforts for protection-type personal insurance increased. The activity index for the CM channel was 104 points, down 2 to 3 points from the previous year, but it remained above 100 points for all six months, maintaining active sales activities.

By type, sales activities were mainly concentrated in term insurance and cancer insurance. Sales of ‘executive-specialized term insurance’ targeting high-net-worth individuals increased, and cancer insurance recorded a high index as the number of new contracts for diseases itself increased. On the other hand, whole life insurance and driver insurance saw a slight decrease in sales activities due to a contraction in new subscriptions.

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