Korea Insurance Research Institute Predicts Expansion of Workers' Compensation Insurance Market

[Asia Economy Reporter Changhwan Lee] It is forecasted that the workers' compensation insurance market will expand after COVID-19.

According to the Insurance Research Institute's report titled 'Workers' Compensation Insurance for Small and Medium Enterprises after COVID-19' on the 3rd, the scope of workers' injury recognition has expanded due to the impact of COVID-19, increasing the burden of workers' compensation for SMEs worldwide.

In the United States, the responsibility to prove workplace COVID-19 infection has been shifted to employers, allowing workers to receive compensation more easily through administrative orders or laws.

In Quebec, Canada, there was a case where an Air Canada call center employee who was injured descending stairs while working from home due to COVID-19 was judged to have a workplace injury, thereby expanding the interpretation of workplace injuries to include such cases.

The digitalization of workers' compensation insurance is also accelerating. CoverEase, a U.S. digital insurance brokerage company, has started providing a brokerage platform exclusively for SMEs that allows comparison and purchase of workers' compensation and related insurance services through artificial intelligence (AI).

AMTD Insurtech Group, a digital solution platform company in Hong Kong, launched a service that fully digitalizes all processes of workers' compensation insurance designated by the Hong Kong government and exclusively brokers it to SMEs.

Tokyo Marine & Nichido Fire Insurance in Japan is developing and providing a damage prediction solution by analyzing SME industry data and worker accident data to predict losses in case of accidents.

The report predicted that the introduction of digital technology to workers' compensation insurance in Korea could contribute to market expansion by increasing subscription convenience for SMEs.

Yoonji Kang, a researcher at the Insurance Research Institute, stated, "Since the Serious Accident Punishment Act has been enforced this year in Korea, increasing the burden of workers' compensation for SMEs, it is necessary to refer to overseas cases applying digital technology to workers' compensation insurance."

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