The First Indexed Insurance in Korea Launches... Samsung Fire & Marine Insurance Provides Coverage Proportional to Flight Delay Time

Launch of 'Departure Flight Delay and Cancellation Compensation Rider'
Insurance payout up to 100,000 KRW depending on flight delay time
Faster insurance claim and payment process

Samsung Fire & Marine Insurance has launched the first index-type insurance product in Korea. This product pays a fixed insurance benefit based on the delay time of flights, with the advantage of quick payout.

On the 7th, Samsung Fire & Marine Insurance announced the launch of an index-type insurance called the 'Departure Flight Delay and Cancellation Compensation Rider.' Index-type insurance pays the agreed insurance benefit when a predetermined index meets specific conditions. Since the index itself serves as the basis for insurance claims, customers can receive payouts quickly. The Korea Insurance Development Institute calculated reference rates for index-type flight delay insurance last July and provided them to insurance companies, based on which Samsung Fire & Marine Insurance developed this product.

Samsung Fire & Marine Insurance Headquarters

Existing indemnity-type flight delay coverage required submitting separate proof documents such as flight delay certificates and receipts for expenses incurred during the waiting time caused by the delay. Compensation was then provided for actual losses within the insured amount limit.

However, this index-type rider pays insurance benefits proportionally to the delay time if an international passenger flight departing from a domestic airport is canceled or delayed by more than 2 hours. The payout is divided into segments: 40,000 KRW for delays between 2 and less than 3 hours, 60,000 KRW for 3 to less than 4 hours, 80,000 KRW for 4 to less than 6 hours, and 100,000 KRW for delays of 6 hours or more or cancellations.

The insurance payout structure of 'Departure Flight Delay and Cancellation Compensation Rider,' the first index-type insurance launched in Korea by Samsung Fire & Marine Insurance.

When subscribing to this rider through Samsung Fire & Marine Insurance’s overseas travel insurance, it is linked with public data provided by Korea Airports Corporation and Incheon International Airport Corporation. In case of flight delay or cancellation, an automatic notification message is sent to the customer. By simply uploading a photo of the boarding pass as instructed, the insurance payout is made immediately upon claim.

Overseas travel insurance covers injuries, illnesses, theft incidents, and flight delays that may occur during overseas travel according to the rider. Premiums were reduced starting last month, and the product is also available on Naver Pay’s overseas travel insurance comparison and recommendation service, allowing customers to compare and choose from other companies’ products.

A Samsung Fire & Marine Insurance official stated, "Index-type insurance is actively being introduced overseas for quick response and recovery from accidents," adding, "We will continue to strive to quickly introduce products that allow customers to experience insurance benefits more conveniently."