Insurance Included in App Services... The Popularity of 'Imbedeodeu Insurance'

Insurance Companies Unveil Embedded Insurance One After Another
Service Companies Pay Premiums on Behalf
"Partnerships Between Insurance Companies and Fintech Firms Expected to Increase"

Insurance companies are introducing embedded insurance to target the MZ generation (Millennials + Generation Z). The trend is to develop products by partnering with fintech (technology + finance) companies frequently used by young people, such as those in travel and sports sectors.

Embedded insurance is a service where an insurance company's insurance product is embedded in the purchase of a general company's product or service. Consumers do not pay insurance premiums directly; instead, insurance-related costs are included in the product price, making premium payment easier.

Samsung Life Insurance launched its first embedded insurance product, 'Samsung Good Day Daily Life Plan Insurance,' last month in partnership with insurtech (insurance + technology) startup OpenPlan. OpenPlan operates the outdoor activity application 'Fairplay.' Noting that Fairplay users mainly engage in outdoor activities, the insurance allows customers to choose coverage periods ranging from a minimum of 2 days to up to 3 years for leisure activities such as weekend family trips, hiking, and marathon events. Earlier this month, Samsung Life also introduced its second embedded insurance product, 'Good Day Health Service,' in collaboration with the digital healthcare platform Goodoc. It provides coverage up to 10 million KRW for eight types of protection, including hospitalization due to food poisoning and diagnosis of specific statutory infectious diseases.

Digital insurer Kakao Pay Insurance is preparing embedded travel cancellation insurance in cooperation with Interpark Triple. This insurance compensates fees incurred due to travel cancellations caused by bad weather or customer change of mind. Kakao Pay Insurance plans to strengthen the competitiveness of embedded insurance products tailored to user needs by eliminating unnecessary coverage this year.

KB Insurance is currently holding an 'Embedded Insurance New Product University Student Idea Contest' targeting university students. Winners will receive prize money (5 million KRW for the grand prize) and additional points on the KB Insurance recruitment exam. A KB Insurance official explained, "We planned the contest to find new embedded insurance products that did not previously exist," adding, "Good ideas submitted will be actively reflected in the development of KB Insurance's embedded insurance products."

The first life insurance company to introduce embedded insurance was Mirae Asset Life Insurance. In June last year, it launched 'GM Pharm Care' in collaboration with health functional food company GM Pharm. When purchasing GM Pharm health functional foods, customers received coverage from Mirae Asset Life's 'Strong Mini Health Insurance.' In the same month, Mirae Asset Life introduced its second embedded insurance product in partnership with Easy Techfin, which developed the M2E (Move to Earn) service app 'Gajago.' M2E is a service that rewards users for exercising, such as walking. When users equip items that provide high rewards in the app, insurance coverage is provided for fractures, casts, and surgical accidents that may occur during exercise.

Although embedded insurance is still in its early stages, it is considered to have high growth potential. It is expected that related products will increase as the desire of non-financial companies to enter the financial industry meets the limitations of the insurance industry itself due to demographic changes and regulatory barriers. The Korea Insurance Research Institute forecasts that the global embedded insurance market will grow to $700 billion (approximately 950 trillion KRW) by 2030. It is anticipated that demand for embedded insurance will further increase when combined with artificial intelligence (AI), big data, and the Internet of Things (IoT). An industry insider said, "Embedded insurance is more about expanding the base by appealing to young people who have low interest in insurance rather than profitability," adding, "Another advantage is the indirect use of big data secured by fintech companies specializing in specific fields."