"Delivery Service Mutual Aid Association Hourly Insurance, Annual Cost Reduction of 24.4 Billion KRW"

Mutual Aid Association Offers Insurance Products Up to 45% Cheaper Than Market Rates

A study has found that the hourly insurance provided by the Delivery Service Mutual Aid Association reduces the actual insurance premiums paid by riders by up to 14% on average per month. This proves that the mutual aid association's hourly insurance helps riders drive safely and reduces their economic costs.

Woowa Brothers, which is in charge of the logistics service for Baedal Minjok (Baemin), announced on the 6th that a study titled "The Effect of Insurance Premium Reduction by the Delivery Service Mutual Aid Association (Professor Yuseong Yong, Soonchunhyang University)" was presented at the 2024 Winter Academic Conference of the Korean Society of Logistics.

The study showed that since the launch of the Delivery Service Mutual Aid Association's hourly insurance in June last year, the insurance premiums paid by riders have decreased by up to 14%. Professor Yuseong Yong's team at Soonchunhyang University stated, "Our research confirmed that the mutual aid association's hourly insurance model effectively reduces the actual costs for riders," adding, "Especially, if hourly insurance is applied to all riders (228,000 people, 2023 second half regional employment survey - Statistics Korea), an annual social cost reduction of 24.4 billion KRW can be expected."

Additionally, the research team emphasized that when considering nominal insurance premiums based on additional factors such as driving time and number of driving days, the average monthly insurance premium for riders enrolled in the mutual aid association's hourly insurance was 45,248 KRW, which is 26% cheaper than the 61,867 KRW paid by riders using private insurance.

The research team said, "The mutual aid association model is a win-win model that guarantees a safety net for two-wheeled vehicle riders and alleviates their economic burden," and added, "If the mutual aid association's insurance becomes established in the industry, it is expected to continuously lower the paid transportation insurance premiums for riders and contribute to creating a healthy delivery insurance ecosystem."

Paid transportation insurance for two-wheeled vehicles provides a social safety net for riders but has had low subscription rates due to high costs. Considering this, the Delivery Service Mutual Aid Association, launched in June 2023, has contributed to increasing riders' insurance subscription rates by offering insurance products such as "hourly paid transportation insurance" and "annual/monthly paid transportation mutual insurance (products subscribed on a yearly or monthly basis)" at prices up to 45% cheaper than the market.

Woowa Brothers participated as a founding member of the mutual aid association by investing the largest capital of 4.7 billion KRW. Furthermore, they actively participate whenever the mutual aid association launches insurance products, striving to expand insurance accessibility for two-wheeled vehicle riders and foster a culture of safe driving. A Woowa Brothers official said, "Since the effect of the mutual aid association's hourly insurance has been confirmed by research, we hope that more riders will receive insurance benefits and that a safe two-wheeled vehicle driving culture will spread," adding, "Woowa Brothers will continue to actively cooperate with the mutual aid association to ensure that riders can deliver in a safer environment."