Surge in Overseas Travel Sparks Travel Insurance Boom, Along with Rising Insurance Fraud...

[Asia Economy Reporter Changhwan Lee] As the number of COVID-19 cases decreases, overseas travelers are increasing, and related insurance is also expanding. However, with the rise in overseas travel, the possibility of insurance fraud is also increasing, prompting financial authorities to urge travelers to be cautious.

According to the Ministry of Land, Infrastructure and Transport on the 11th, the number of international passengers last month reached 644,000. This is a 259.8% surge compared to the same period last year and a 55.4% increase compared to the previous month.

As the government eased regulations by exempting vaccinated arrivals from quarantine starting March 21, following a decrease in domestic COVID-19 infections, more people began traveling abroad.

With the increase in overseas travelers, overseas travel insurance products are selling rapidly. Overseas travel insurance is a product that most travelers purchase to prepare for accidents that may occur in foreign countries.

According to Samsung Fire & Marine Insurance, the number of overseas travel insurance policies sold by the company last month was 13,798, a 627.7% increase compared to the same period last year. This is also an 88.6% increase compared to 7,313 policies sold the previous month. Major non-life insurers such as Hyundai Marine & Fire Insurance and DB Insurance have seen similar growth rates in travel insurance sales.

As insurance product sales have surged, companies are actively promoting their products. Samsung Fire & Marine Insurance revamped and launched its Direct Overseas Travel Insurance last month. This product covers overseas medical expenses, loss or damage to personal belongings during travel, and can be easily purchased via mobile phone. Starting this year, it also includes coverage for home burglary damage during travel, providing protection for the safety of empty homes while abroad.

Hyundai Marine & Fire Insurance’s Direct Overseas Travel Insurance is also a representative travel insurance product. In addition to basic coverage for accidental death and permanent disability during overseas travel, it offers special contracts that cover overseas treatment and domestic medical expenses resulting from illnesses or injuries sustained during travel.

However, with the increase in overseas travel, insurance fraud may also rise, leading financial authorities to issue a warning. The Financial Supervisory Service recently identified 20 suspects involved in travel insurance fraud, who unjustly claimed insurance money citing theft or damage of personal belongings during travel, and referred the case to the police for investigation.

These individuals committed illegal acts such as selling stolen high-value items as used goods, falsifying estimates, and receiving duplicate insurance payments.

A Financial Supervisory Service official stated, "With the recent lifting of COVID-19 social distancing measures, demand for domestic and international travel and travel insurance subscriptions is expected to increase. Since travel insurance fraud involves relatively small amounts, people may not recognize it as a serious crime and could be easily exposed to insurance fraud, so vigilance is necessary."

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