The World's First 'Online Trade Insurance' Launched in the Public Sector

"Trade Insurance Enrollment, Easy and Fast Through Non-Face-to-Face"

Source: Ministry of Trade, Industry and Energy

[Asia Economy Reporter Moon Chaeseok] The world's first 'online trade insurance' in the public sector has been launched.

On the 4th, Na Seung-sik, Director of the Trade and Investment Office at the Ministry of Trade, Industry and Energy, visited the Korea Trade Insurance Corporation (K-sure) central branch and attended the demonstration of the issuance of the first online insurance policy.

Polytech INC, a small and medium-sized petrochemical company, received the first insurance policy.

Online insurance is a new financial product utilizing fintech. Exporting small and medium-sized enterprises (SMEs) and mid-sized companies will be able to apply for and subscribe to insurance online without visiting K-sure in person.

Submission of documents that companies were required to submit is also exempted. This is because K-sure directly verifies the necessary information for subscription by accessing export-related institutions on behalf of the companies.

Until now, companies had to go through document procedures such as credit information (Korea Enterprise Data), export performance (Korea Customs Service), SME verification (Ministry of SMEs and Startups), business registration certificate, and corporate registration certificate (Ministry of the Interior and Safety).

The system has been built to allow insurance premium payments to be processed online, enhancing convenience for companies.

The Ministry of Trade, Industry and Energy expects that the trade insurance subscription period, which previously took more than five days, will be reduced to an average of less than one day through this product. It is also expected to be a great help to export beginners and promising companies.

In September, 'online direct guarantees' will be launched, and mobile insurance and guarantee programs are scheduled to be released in the first half of next year.

Director Na said, "The launch of online trade insurance will be an opportunity to take a step closer to the paradigm shift to digital trade in the post-COVID-19 era," adding, "I hope that it will ease the burden on our export companies struggling due to COVID-19 and allow small and medium-sized enterprises to regain export vitality with peace of mind under the protection of trade insurance."