Baemin Connector Part-Time Insurance Premium Reduced by 170,000 KRW Annually

Following KB Insurance, DB Insurance also launches product... Expanded enrollment age
Weekly 20-hour work reduces insurance premium by 170,000 KRW annually compared to before

[Asia Economy Reporter Kim Cheol-hyun] Woowa Brothers announced on the 29th that its subsidiary Woowahan Cheongnyeon (CEO Kim Byung-woo) will expand and revamp the hourly insurance for Baemin Connector's motorcycles. Connectors are riders who do delivery work as a side job, and to work for Baedal Minjok (Baemin), they must subscribe to hourly insurance.

The hourly insurance for Connectors was first developed in October 2019 by Baemin and KB Insurance as the industry's first insurance product of its kind. Unlike conventional insurance contracts that are annual, this product was designed to apply insurance coverage only during the hours when part-time delivery workers use motorcycles, based on the insight that they use motorcycles only during specific times. The insurance premium is cheaper compared to comprehensive insurance, which was well received by part-time delivery workers.

With this revamp, the number of insurance companies available for subscription has expanded. Until now, hourly insurance could only be subscribed through KB Insurance, but now it is also available through DB Insurance. The subscription conditions have also been improved. For the existing KB Insurance product, the minimum subscription age was lowered from 26 to 24 years old, and the condition that only motorcycles with engine displacement of 250cc or less could be insured was removed. DB Insurance, which newly launched hourly insurance, also set the minimum subscription age at 24 years old and did not impose any conditions based on motorcycle engine displacement.

As the number of insurance companies handling hourly insurance increases, the insurance premium has dropped by nearly 10%. Before the revamp, KB Insurance's premium was 1,664 KRW per hour, but starting from the 1st of next month, 1,500 KRW per hour will be applied. For Connectors who work 20 hours per week, this means a reduction of 13,000 KRW per month (based on 4 weeks) and 170,000 KRW per year compared to before. DB Insurance's premium is also set at 1,500 KRW per hour.

Kim Byung-woo, CEO of Woowahan Cheongnyeon, said, "We have significantly improved the existing hourly insurance to reduce the insurance premium burden for Baemin Connectors who do delivery work part-time and to create a more convenient delivery environment." He added, "We will continue to strive for a safe delivery environment and to enhance the convenience of riders and Connectors."