120,000 Users Compare and Recommend Car Insurance... 6,100 Contracts Signed

It has been revealed that approximately 120,000 people used the car insurance comparison and recommendation service in the past month. Through this, over 6,100 insurance subscriptions were made.

The Financial Services Commission announced on the 20th that 120,000 consumers used the car insurance comparison and recommendation service launched on the 19th of last month, resulting in over 6,100 insurance subscriptions. The difference between the number of service users and contract cases is partly attributed to the nature of car insurance, which can only be subscribed to when the contract expiration date arrives. In the case of comprehensive insurance, about 1,000 people used the comparison and recommendation service, resulting in over 130 subscriptions.

As of last year, the domestic car insurance market is one where about 25 million vehicles are mandatorily insured and renewed annually. Personal vehicles (including two-wheelers) account for about 19.4 million units (78%), and commercial/business vehicles account for about 5.6 million units (22%). The insurance subscription channels are ranked as follows: face-to-face such as agents 44.5%, online (CM) 38.2%, and telephone (TM) 17.2%.

While many consumers are using the insurance comparison and recommendation service, there are positive evaluations regarding the diversification of sales channels such as online sales, but some opinions suggest that it has not fully met the initial expectations as it does not lead to actual insurance subscriptions. There are also opinions that service improvements are necessary to expand the number of insurance contracts.

Price-competitive small and medium-sized insurers are actively participating in this service to acquire new customers. They are making progress in the existing car insurance market, which is dominated by large insurers holding over 90% market share. Their market share is 7.9%, but in insurance comparison and recommendation services alone, they secure a 48.7% market share.

Large insurers are also improving their own CM channels and expanding discounts and additional services when subscribing through their CM channels to compete with platforms, leading to active competition not only among insurers but also among sales channels.

Currently, insurers and fintech companies are in discussions to launch a pet insurance comparison and recommendation service in the second quarter. Traveler’s insurance, savings insurance, and indemnity insurance are also planned to be launched sequentially.

A Financial Services Commission official stated, "Insurers and fintech companies will promptly improve the issues pointed out by users as inconveniences and continuously enhance service convenience. To this end, we are considering expanding information-sharing items for accurate premium calculation and will also discuss improvement plans for the commission system."