Hole-in-One and Used Goods Fraud Coverage... Mini Insurance Capturing MZ Generation

Last Year’s Best-Selling 'Golf Insurance' on KakaoTalk 'Gift'
Hundreds of Thousands Won Covered for Incidental Costs After Hole-in-One
Mini-Insurances for Camping, Hiking, and Fishing Also Popular

Micro short-term insurance (mini insurance) that covers injury accidents occurring during outdoor activities such as camping, golf, and performances is gaining popularity. With unique coverage ideas and low premiums, it is highly favored among young people.

Recently, golf insurance has attracted the most attention. It compensates for various accidents that occur at golf courses. Many people purchase it on a daily basis whenever they go for a round, and the premium is only a few thousand won. As the number of golf players exceeds 10 million and golf's popularity grows, accidents such as losing eyesight after being hit by a golf ball or dying after being swept away by a golf cart have become frequent, increasing the demand for insurance. A representative from Kooup Marketing, which operates the 'Gift' service within KakaoTalk, said, "Last year, the most sold insurance through KakaoTalk Gift was golf insurance," adding, "It accounts for about 50% of total sales, showing its great popularity."

Golf insurance is even more notable because it covers hole-in-ones. A hole-in-one occurs when the ball goes into the hole on the first shot at a par-3 hole. When a hole-in-one is achieved, it is customary to treat companions to a meal or give a separate tip to the caddie, known as 'buying a round.' Hyundai Marine & Fire Insurance's golf insurance covers hole-in-one celebration parties, commemorative tree planting, and congratulatory money for accompanying caddies. Hanwha General Insurance's golf insurance also provides coverage that pays 200,000 won when a hole-in-one is made at a screen golf course. From January to April this year, the total premium for hole-in-one insurance from domestic insurers was 191,102,824 won, a 25.4% increase compared to the same period last year. During the same period, the number of subscriptions increased by 84.8% to 24,438 cases.

The probability of an amateur golfer making a hole-in-one is 1 in 12,000, which occurs approximately once every 3,000 rounds.

There is also insurance for consumers who mainly attend outdoor performances or festivals. On the 21st, Lotte Insurance launched the 'VILLAIN Deokmingout Injury Insurance.' It covers sequelae of injuries, fracture diagnosis, and surgery costs that may occur at crowded concerts of idol or trot singers. This insurance also compensates for actual damages up to 500,000 won if the insured suffers fraud while purchasing concert tickets, photocards, figures, etc., on secondhand trading platforms.

Insurance for hikers is also popular. It covers diagnosis, surgery, and emergency room visits related to falls or fractures that may occur during hiking. Shin, a man in his 40s who runs a hiking club, gifts hiking insurance to members via KakaoTalk Gift every time he goes hiking weekly. According to the coverage items of Ace Insurance’s 'Chubb One Day Leisure Insurance (Hiking Plan)' available on KakaoTalk Gift, it covers diagnosis of five major fractures (1,000,000 won), fracture surgery (200,000 won), and cast treatment costs (100,000 won), with a premium of 960 won per day.

Carrot General Insurance is selling 'SmartON Leisure Injury Insurance,' which covers accidents occurring during 18 types of leisure activities such as soccer, tennis, and fishing. Once subscribed, the insured can enter the coverage items and times whenever they engage in leisure activities within one year to receive coverage. The daily premium starts from 946 won.

Samsung Fire & Marine Insurance offers a customized product through ‘Mini Life (Leisure) Insurance’ that allows customers to select necessary coverage items to prepare for accidents occurring during various outdoor activities such as camping. It provides various coverages including medical expenses and baggage loss. The coverage period can be selected from one day up to a maximum of 30 days. An industry insider said, "Mini insurance, which used to be sold as a free service or bundled product, has now expanded into a competition of how creative the ideas are for accidents that may occur in the future," adding, "It is very helpful in attracting MZ generation (Millennials + Generation Z) customers who are relatively indifferent to insurance."