"‘I Hate Complicated and Expensive Insurance’ The Golden Age of Mini Insurance"

[Asia Economy Reporter Oh Hyung-gil] '9,900 KRW driver insurance, 3,500 KRW mobile phone damage insurance, 5,000 KRW bone injury insurance'

The era of mini insurance with monthly premiums under 10,000 KRW has arrived. These products are praised for their simple structure and affordable premiums, addressing the drawbacks of traditional insurance products that are complex and expensive.

According to the insurance industry on the 24th, Viva Republica, which operates the mobile financial service Toss, launched a 'Mobile Phone Damage Insurance' with Ace Insurance, which surpassed 4,400 subscribers in just one week. It is the fastest-growing mini insurance product sold through the Toss application.

The insurance covers up to 300,000 KRW per repair or replacement, with a limit of twice a year, and anyone using Samsung, LG, or Apple phones released after 2017 can subscribe. It also compensates up to 1,000,000 KRW for financial fraud damages such as phishing and hacking.

Carrot General Insurance, Korea's first digital non-life insurer, has launched numerous mini insurance products starting with a 990 KRW monthly driver insurance.

'Carrot 990 Driver Insurance' costs 990 KRW per month regardless of age or gender for private car drivers. It covers essential driver insurance items such as traffic accident support funds (30 million KRW), fines (20 million KRW), attorney fees (5 million KRW), and traffic accident death insurance (30 million KRW).

The advantage is that subscribing mainly to core coverage is not only cheaper but can also be more efficient for subscribers.

Carrot Insurance also introduced pet walking insurance and overseas travel insurance using an 'on-off' switch insurance method. Pet walking insurance is offered in the form of coupons and credits, allowing dog owners to pay a 2,000 KRW premium for as low as 45 KRW per walk, enabling a total of 44 walks.

For overseas travel insurance, customers pay a standard premium for the first use, but from then on, the insurer removes additional business-related costs, reducing premiums. Customers who travel twice a year can use the insurance at a price 37% cheaper than the traditional method.

MG Insurance's online channel JOY Direct recently launched the ‘JOY Driver Insurance’ with a monthly premium of 2,900 KRW. Subscribers are covered for traffic accident death insurance (10 million KRW), fines (20 million KRW), attorney fees for car accidents (5 million KRW), and traffic accident support funds (30 million KRW).

BankSalad introduced Orange Life’s ‘Non-dividend Orange Bone Fact Injury Insurance Mini’ last month, which covers bone diseases.

Upon diagnosis of a fracture due to an accident, it pays 50,000 KRW per fracture benefit, and 50,000 KRW per cast treatment benefit. A one-time premium payment of 5,000 KRW provides coverage for one year.