[Become an Insurance Insider] There Are Specific Insurance Policies That Perform Well Online

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[Asia Economy Reporter Oh Hyungil] As the insurance industry pushes for digital transformation, insurance sales through online channels are increasing. Unlike insurance contracts through agents, online channels are characterized by consumers directly subscribing to insurance according to their own needs.

Among life insurance, the products that sell well online include term, accident, cancer, children, pension savings, and savings insurance, while among non-life insurance, online channel subscription rates are high in disease, savings, driver, and traveler insurance.

According to the report "Analysis of Online Channel Insurance Subscribers by Product and Age" released on the 12th by Park Heewoo, a research fellow at the Korea Insurance Research Institute, among life insurance company products, pension savings had the highest online channel subscription rate at 16.6%. This was followed by savings (8.4%), children (4.8%), term (3.6%), and accident (3.0%).

Among non-life insurance products, more than half (50.9%) of traveler insurance subscriptions were contracted online. Savings (4.8%), driver (4.8%), and disease (1.8%) also had high online subscription rates.

In particular, for protection-type insurance such as accident and disease insurance, cancer, term, and children insurance, the proportion of online channel subscriptions is increasing mainly among those aged 30 and under, but the increase is not significant among those aged 50 and over.

Savings-type insurance was mainly subscribed to online by people in their 30s and 40s.

Driver insurance was analyzed to be easy to subscribe to online because it mainly covers similar guarantees such as fines, traffic accident handling support funds, and lawyer appointment fees.

Traveler insurance is also rapidly expanding online subscriptions because the coverage is simple, making it easy to compare products and subscribe, and the premiums are inexpensive.

Also, by product, small-amount customized protection insurance is mainly subscribed to online by consumers aged 30 and under, monthly payment savings insurance by those in their 30s and 40s, and driver and traveler insurance with short payment periods are mainly sold through online channels across all age groups.

Research fellow Park said, "Although insurance sales through online channels are increasing, their absolute share in total sales channels is still not high, and sales are centered on small-amount and short-term insurance, which does not greatly help insurers' profitability," but added, "With the advancement of digital technology improving the search efficiency and competitiveness of online channels and the younger generation emerging as the main consumer group, the growth and interest in the online sales market will continue."

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