Internet Enrollment for Car Insurance Reaches 41%... Surpasses In-Person Enrollment for the First Time

[Asia Economy Reporter Changhwan Lee] In the personal automobile insurance market, internet enrollment (CM) has surpassed face-to-face enrollment for the first time.

According to the Korea Insurance Development Institute on the 14th, based on the number of automobile insurance subscriptions last year, the CM channel accounted for 40.7%, overtaking the face-to-face channel's 39.9% for the first time. The telemarketing channel (TM) followed with 19.4%.

In terms of insurance premiums, the face-to-face channel still holds a 46.1% share, exceeding the CM channel's 36%. However, the CM channel's share has been increasing every year.

The growth of the CM channel was driven by the 20-40 age group, who are familiar with internet use and sensitive to price. The CM subscription rates by age group are 62% for those in their 30s, 57% for those in their 20s, 48% for those in their 40s, 30% for those in their 50s, and 27% for those in their 60s.

The Korea Insurance Development Institute analyzed that the use of the Vehicle Information Integration Service (VeTI), linked with big data, allows insurance premiums to be calculated by simply knowing the vehicle number even without detailed vehicle specifications, and the reduced time required has also made internet enrollment easier.

The institute emphasized that when consumers design coverage directly via the internet, it is important to carefully select the coverage range suitable for oneself, such as the driver scope, whether to subscribe to each coverage, and compensation limits, to ensure sufficient compensation in case of an accident.

They also added that it is useful to thoroughly check whether any special contracts that can provide premium discounts have been omitted and to be aware of automatically enrolled special contracts related to compensation.

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