Kyobo Lifeplanet Life Insurance Achieves Lowest Contract Withdrawal Rate, Ranks No.1 in Industry

Kyobo Lifeplanet Life Insurance, the only domestic digital life insurer without insurance agents, announced on April 16 that it recorded the lowest insurance contract withdrawal rate (1.95%) in the Korean life insurance industry.

원본보기 아이콘

This figure is about one-third of the average contract withdrawal rate (6.28%) of 22 domestic life insurers in the previous year, demonstrating that the “easy and convenient self-directed insurance subscription” culture championed by Kyobo Lifeplanet, as a digital insurer, has successfully taken root in the market.

“Contract withdrawal rate” refers to the percentage of policyholders who cancel their contracts within one month after signing, upon deciding that the insurance was unnecessary. A high withdrawal rate indicates incomplete explanations by the insurer or agent, or customers’ change of mind due to uncertain subscriptions. This rate is commonly used as a key indicator for measuring customer trust in insurance companies.

The reason Kyobo Lifeplanet was able to achieve such a low withdrawal rate lies in its “digital subscription method without agents.” Because customers can easily access information and select only the necessary coverage through the company’s mobile app and website, impulsive subscriptions or those prompted by acquaintances are fundamentally prevented.

Not only the withdrawal rate but also actual customer satisfaction remains at the highest level. The “25th-month policy retention rate,” which represents the percentage of customers who maintain their policy for more than two years without cancellation, stands at 88.2%, about 20% higher than the domestic average for life insurers, proving Kyobo Lifeplanet’s leadership in the market.

So far, Kyobo Lifeplanet has continuously strengthened its “refreshing the insurance experience” strategy by introducing customer-driven subscriptions that exclude burdensome face-to-face meetings, a rational premium structure by eliminating agent commissions, and daily benefits through the healthcare platform “Paplay,” which rewards healthy lifestyle practices.

Kyobo Lifeplanet CEO Kim Youngseok stated, “The fact that our contract withdrawal rate is the lowest in the industry proves that our customers fully understand and are confident in our products within our agent-free digital insurance environment. Going forward, we will leverage the strengths of a digital life insurer to remove unnecessary costs such as agent commissions and expand a trust-based digital insurance ecosystem that customers can rely on and choose first.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.