Due to the Non-Face-to-Face Trend and Increase in Single-Person Households... Online Mini Insurance Gains Popularity

Last Year Online Insurance Initial Premiums 25.2 Billion KRW... 50% Increase Compared to Previous Year

[Asia Economy Reporter Ki Ha-young] As the non-face-to-face trend spreads due to the impact of COVID-19, 'online mini insurance' that can be easily subscribed to is gaining popularity.

According to the Life Insurance Association on the 19th, the first-year premiums through online channels of life insurance companies last year amounted to 25.2 billion KRW, an increase of about 50% compared to the previous year. This is due to consumers' growing preference for non-face-to-face channels such as online channels rather than traditional face-to-face channels.

Most life insurance products through online channels are small-amount short-term insurance with short coverage periods and low premiums. The main types of online mini insurance offered by life insurers can be broadly divided into four categories: ▲DIY-type cancer insurance where consumers directly select the coverage items they need ▲insurance covering diseases related to smartphone use ▲insurance covering injuries related to hobbies and leisure activities ▲COVID-19 related products.

Mirae Asset Life Insurance offers 'Mini Cancer Insurance' covering major cancers in men such as stomach cancer, lung cancer, colon cancer, prostate cancer, and major cancers in women such as breast cancer, thyroid cancer, and female reproductive cancers. Hanwha Life's 'Life Plus Oh My Pick Cancer Insurance' is a DIY mini cancer insurance that allows coverage selection for only the necessary areas, providing coverage of 40 million KRW for general cancer, 20 million KRW for minor cancers, and 4 million KRW each for similar cancers.

Targeting the MZ generation, mini insurance related to smartphones has also appeared. KDB Life Insurance launched a product that pays 200,000 KRW per surgery and 10,000 KRW per day for hospitalization exceeding three days for diseases related to VDT (Video Display Terminal) syndrome caused by digital devices, such as dry eyes, carpal tunnel syndrome, myofascial pain syndrome, and turtle neck syndrome. There are also products that cover medical, surgical, and hospitalization costs related to injuries such as fractures and cruciate ligament injuries that frequently occur during hobbies or leisure activities. Shinhan Life Insurance's '(Non-)Shinhan Sports & Leisure Coverage Insurance' covers accident surgery benefits, Achilles tendon injury surgery benefits, and emergency room visit medical expenses.

With the expansion of COVID-19 vaccination, insurance products have emerged that cover anaphylactic shock or pay benefits if death is caused directly by specific infectious diseases. Kyobo Life Planet's '(Non-)m Specific Infectious Disease Death Insurance' pays 20 million KRW if COVID-19 is the direct cause of death, and LINA Life Insurance's '(Non-)Safe Anaphylactic Shock Diagnosis Insurance' covers 2 million KRW for diagnosis of anaphylactic shock, a representative vaccine side effect.

The Life Insurance Association stated, "Single-person households, lacking dependents, are less attracted to traditional life insurance products such as whole life insurance, but have great interest in products that fit their lifestyle and provide coverage to themselves," and predicted, "Online and mobile products responding to such demand will become more diverse."