[Real-World Finance] In an Era of High Fuel Prices... Saving on Insurance Premiums by Walking and Riding

An era of high fuel prices is upon us, with the average gasoline price approaching 2,000 won. In this environment, insurance products that allow customers to save on premiums simply by walking, being active, and using public transportation are gaining attention. These “lifestyle-integrated insurance” products provide discounts and reward benefits by reflecting customers’ daily living data, emerging as a new way to manage personal finances. The approach is considered a “win-win” as preferred customers enjoy lower premiums, while insurance companies are able to improve their loss ratios.

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A representative example of this trend is the “step count discount” service. KB Insurance offers a “step count discount rider” for automobile insurance, providing premium discounts of up to 9% for customers who achieve a certain number of steps. Policyholders who walk more than 5,000 steps per day for at least 17 days within the 30 days prior to the step count check are eligible for the discount. Step counts can be measured using the insurer’s app, as well as a variety of platforms such as Cashwalk and Toss.

Additionally, a no-accident discount system is in place, applying lower premiums for policyholders with no history of accidents or illnesses, reflecting their health status. Recently, a “10-year health history disclosure insurance” product was introduced, allowing customers to disclose only the past 10 years of medical history in exchange for the same coverage at a lower price.

Hana Insurance has launched “New Healthier, Better Hana Insurance,” which offers premium discounts of up to 40% based on health grades. Every two years, the policyholder’s health is re-evaluated; if their grade improves, they receive additional discounts, while a downgrade does not result in a premium increase.

ABL Life has also adopted a “health grade” model that comprehensively considers body mass index (BMI), blood pressure, fasting blood glucose, and more, offering up to 15% premium discounts on main contracts depending on the product if the policyholder’s health improves.

With the proliferation of data measurement infrastructure such as healthcare apps and navigation systems, related insurance products are quickly increasing. Kyobo Life, Samsung Life, and Hanwha Life are partnering with the Seoul Metropolitan Government’s public healthcare service “Wrist Doctor 9988” to offer premium discounts to customers who achieve certain walking goals. If a customer walks more than 8,000 steps per day (5,000 steps for those aged 70 and above) for at least 20 days in a month, they can receive a 5-10% discount on premiums for up to 12 to 60 months. However, discount rates and conditions vary by product, and enrollment must be done individually according to each insurer’s guidance.

Major non-life insurers such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and DB Insurance are also competing with services leveraging health management data. Notable examples include Samsung Fire & Marine Insurance’s “Anyfit,” Hyundai Marine & Fire Insurance’s “Hi Health Challenge,” and DB Insurance’s “Promy Healthcare.” These services reward policyholders with points or mileage when they achieve specific goals based on step count, activity level, and exercise habits, which can then be used to receive premium discounts.

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This trend is also extending to public transportation. Products offering premium discounts to customers who use public transportation instead of driving are being introduced one after another. This is because less vehicle use reduces the likelihood of accidents and can improve insurers’ loss ratios. Analysts note that this also coincides with consumer demand to increase public transportation use as the burden of operating a private car grows amid high fuel prices.

KB Insurance offers tiered automobile insurance premium discounts based on public transportation usage over the past three months. For individual automobile insurance, named drivers aged 30 or older can reduce their premiums by up to 10%. For the “spouse-limited rider,” discounts of around 7% are available.

Drivers of business-use vehicles can also receive about a 7% premium discount if they meet certain public transportation usage criteria. This is seen as an effective financial strategy, as it helps reduce insurance premiums, which are often regarded as fixed expenses.

Samsung Fire & Marine Insurance’s “Chak! Good Public Transportation” product allows policyholders to save up to 10% on premiums by including not only subway and bus use but also taxi and public bicycle usage. Customers who use mobility services-including subways, buses, taxis, and Seoul public bicycles (Ttareungi)-for at least 25 days in the two months prior to enrolling can receive the discount. Unlike existing public transportation riders, which only covered buses and subways, this product expands the benefits to include taxis and Ttareungi bicycles.

NH NongHyup Life’s “ESG Sso-ok NH-e Public Transportation Insurance” is designed to strengthen coverage for accidents that occur while using public transportation, providing higher benefits than for ordinary accidents, and targets customers who frequently use public transportation.

Industry insiders observe that such insurance products are becoming a new financial trend, providing both cost-saving and lifestyle management functions amid an environment of high fuel and consumer prices.

A domestic non-life insurer representative explained, “Step count and public transportation usage discounts are ultimately structured to benefit customers with safe driving habits. In fact, our analysis of real data shows that customers with higher activity levels or who use their vehicles less tend to have lower accident risk and loss ratios.”

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