COVID-19 Spread Leads to Successive Entry Restrictions... Overseas Travel Insurance Subscriptions Also 'Plummet' (Comprehensive)

From January 20, When COVID-19 Cases Emerged, 133,851 Policies Subscribed to Top 5 Non-Life Insurers in One Month, Down 25.1% Year-on-Year

[Asia Economy Reporter Ki Ha-young] Due to the spread of the novel coronavirus infection (COVID-19), overseas travel and business trips have decreased, leading to a decline in the number of overseas travel insurance subscriptions. As the spread of COVID-19 continues, this downward trend is expected to persist for the time being.

According to the industry on the 27th, during the one-month period from January 20 to February 20, since the first domestic COVID-19 case was confirmed on January 20, the top five non-life insurance companies (Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, KB Insurance, and Meritz Fire & Marine Insurance) recorded a total of 133,851 overseas travel insurance subscriptions. This figure represents a 25.1% decrease compared to the same period last year (178,886 subscriptions).

Even considering that the number of passengers at Incheon Airport reached a peak during the Lunar New Year holiday last year (February 1?7), which was a long holiday with many overseas travelers, the number of overseas travel insurance subscriptions has decreased this year. Compared to 2018, which had a similar Lunar New Year holiday period (143,238 subscriptions), there was a decrease of about 10,000 subscriptions, or 6.6%.

An industry official explained, "As COVID-19 spread and overseas travel decreased, the number of overseas travel insurance subscriptions also declined. If more countries block entry of Koreans, the number of travel insurance subscribers will inevitably decrease."

The number of travel insurance subscribers is expected to continue declining in the future. This is because overseas travelers are expected to decrease sharply, and the number of countries blocking entry of Koreans due to COVID-19 is increasing. Companies have effectively issued bans on overseas business trips. Most large corporations, including Samsung Electronics and LG Electronics, are recommending refraining from inter-office and overseas business trips.

According to the Ministry of Foreign Affairs, as of 10 a.m. on the 27th, the number of countries banning entry of Koreans has increased to 21. In addition to Israel and Hong Kong, countries such as Vietnam, Singapore, Iraq, and Japan have been included. Including countries with strengthened entry procedures, the total rises to 42. China is also imposing measures such as 14-day hotel quarantine or self-isolation for entrants from Korea in five regions: Shandong Province, Liaoning Province, Jilin Province, Heilongjiang Province, and Fujian Province.

In particular, with countries like Vietnam and Japan, which were considered major overseas travel destinations, banning entry of Koreans, travel agencies are suffering severe damage. The travel industry estimates that due to this impact, reservations at major travel agencies this week have plummeted by up to 90% compared to the previous year.