"No Money for Clothes, but 7 out of 10 Office Workers in Their 20s and 30s Pay Over 100,000 Won Monthly Insurance Premium"

Unlike in previous years, young people also recognize the necessity of insurance

(Pixabay)

[Asia Economy Reporter Oh Hyung-gil] Three out of four people in their 20s and 30s pay more than 100,000 KRW in insurance premiums every month. Contrary to the notion that young adults just starting their careers are losing interest in insurance, many young office workers regard insurance as an important financial product.

According to a financial survey conducted by Goodrich through the mobile research firm Open Survey targeting 1,000 office workers in their 20s and 30s living in the Seoul metropolitan area, 75% of respondents spend more than 100,000 KRW on insurance premiums monthly.

Respondents who pay around 100,000 KRW per month accounted for 21%, those paying around 200,000 KRW made up 19%. Those paying around 300,000 KRW were 15%, 7% paid around 400,000 KRW, and a significant 11% reported paying over 500,000 KRW in insurance premiums.

On the other hand, only 25% of respondents paid less than 100,000 KRW in premiums.

In particular, insurance premiums ranked second highest among fixed expenses after housing costs.

However, 77% of the 20s and 30s age group responded that they do not know the exact coverage details of their current insurance policies. This indicates that the majority subscribe to insurance without detailed explanations, often influenced by recommendations from parents, friends, or acquaintances.

Moreover, 95% of respondents expressed the need for insurance analysis services, reflecting high interest in such services.

Another survey also showed that young people have a high interest in new insurance riders.

According to an analysis by LINA Life Insurance of cancer insurance subscribers from December to March, 80% of subscribers in their 20s and 30s chose riders that cover targeted anticancer treatments. For those under 20, the rate exceeded 90%, and the 20s and 30s age group showed a high attachment rate of 80%.

Targeted anticancer treatment is a cutting-edge cancer therapy that identifies genetic changes in cancer-causing cells and uses corresponding drugs for treatment. It is characterized by fewer side effects compared to traditional chemotherapy.

This indicates that the number of young people opting for new treatment methods is increasing due to advances in medical technology.

A 2018 insurance consumer survey conducted by the Korea Insurance Research Institute also showed that insurance subscription rates among people in their 20s and 30s are not lagging behind those in their 40s and 50s.

The life insurance subscription rates for people in their 20s and 30s were 63.8% and 77.3%, respectively, while non-life insurance subscription rates were 77.1% and 87.6%. Considering that the subscription rates for people in their 40s were 84.3% for life insurance and 88.8% for non-life insurance, a significant number of young people are insured.

An industry insider said, "As the population ages, insurance companies have introduced products tailored to the characteristics of the elderly, but they must actively develop customized products targeting young people. They are emerging not as future potential customers but as current core customers."