Car Insurance Comparison and Recommendation Service 2.0 Released... Automatic Vehicle Information Entry

Financial Services Commission Improves Service After Low Subscription Numbers Since Last January
Platform Commission Fee Reduced from 3% to 1.5%

The car insurance comparison and recommendation service, which was launched last January but underwent restructuring due to low subscriber numbers, will be upgraded to version 2.0 starting from the 20th.

According to the Financial Services Commission on the 19th, Naver Pay and Toss will first launch the car insurance comparison and recommendation service 2.0 from midnight on the 20th. Habit Factory plans to release the service by the end of this month, and Kakao Pay is expected to introduce it in the second half of this year.

Car insurance is a policy that the majority of approximately 17 million citizens are required to subscribe to annually. The products are largely standardized, making them ideal for platform comparison and recommendation services. Accordingly, the Financial Services Commission introduced car insurance as the first platform comparison and recommendation service last January.

However, usage had been low due to price differences between platforms and existing insurers’ online channels (CM), as well as inaccuracies in premium calculations caused by manual data entry. In response, the financial authorities announced a plan to promote car insurance comparison and recommendation service 2.0 at the 3rd Insurance Reform Meeting held last September, aiming to improve these factors.

The financial authorities have since revised the innovative financial service regulations to allow additional information sharing with platforms and have conducted system linkage work among the Korea Insurance Development Institute, fintech companies, and insurers. Fintech companies have also worked on improving the user interface (UI) for consumer convenience. The commission fee insurers pay to platforms has been reduced from the existing 3% to 1.5%.

In version 2.0, consumers whose car insurance contracts expire on April 19 will be able to use the comparison and recommendation service with unified pricing. If the expiration date is before April 19, there may be premium differences between the insurer’s direct website and the platform, so caution is advised.

The Korea Insurance Development Institute will provide vehicle information and expiration dates so that vehicle details and car insurance expiration dates are automatically entered without separate input from consumers. Insurers also plan to provide additional verification information for special discount coverage.

A Financial Services Commission official stated, "Accurate premium calculation is crucial to recommending products that best suit consumers, so we plan to continue enhancing the service to improve premium calculation accuracy and negotiate additional information provision." The official added, "Centered on the Korea Insurance Development Institute, we will carry out additional information provision and system upgrades so that advanced safety devices can also be automatically recorded."