[Asia Economy Reporter Oh Hyung-gil] The insurance premium for Samsung Electronics' smartphone 'Galaxy Note10' mobile phone insurance (device insurance) is expected to be set at around 5,500 KRW per month. Apple's iPhone 11 is 7,000 KRW.
On the 25th, the Korea Insurance Development Institute announced that it analyzed the device insurance statistics operated by the three mobile carriers and calculated the reference pure premium rate, which can be considered a benchmark price.
Device insurance is a policy that replaces the phone with a new device or pays repair costs in case of theft, loss, or damage. The number of subscribers is approaching 10 million.
The Institute explained that it calculated the reference pure premium rate by distinguishing Apple's iPhone, which operates a refurbished phone system, from other mobile phones according to compensation limits and deductibles.
Based on a 30% deductible and a compensation limit of 1.2 million KRW, the operating insurance premium for the Galaxy Note10 is 5,500 KRW.
Based on a 30% deductible, a compensation limit of 1.5 million KRW, and a refurbished compensation limit of 500,000 KRW, the operating insurance premium for the 'iPhone 11' is 7,000 KRW.
The operating insurance premiums presented by the Institute are at the industry average level, and the premiums of previously released products are somewhat higher or lower than this. Insurance companies newly entering the device insurance market will use the Korea Insurance Development Institute's reference pure premium rate, so there is a possibility that premiums will converge to this level in the future.
Yoo Seung-wan, head of the Property Insurance Team at the Korea Insurance Development Institute, said the reference pure premium rate "is meaningful as a starting point for rationally improving the premium rate system of the mobile phone insurance market, which has an annual premium scale of about 500 billion KRW," and added, "We plan to continuously improve the reference pure premium rate system for mobile phone insurance to keep pace with the technological development of mobile devices."
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