Overseas Travel Insurance Comparisons Up 250%
"Number of Insurer Contracts Up 40% After Introduction of Financial Services Commission's Comparison and Recommendation 2.0"
Naver Pay announced on August 10 that the cumulative number of users for its auto insurance comparison service, which launched in January last year, has surpassed 3.5 million in just a year and six months.
The company explained that the number of insurance contracts increased after the Financial Services Commission introduced the 'Auto Insurance Comparison and Recommendation 2.0' in March this year.
The number of users who completed the insurance premium comparison process increased by 220% compared to before. This was because, with the introduction of the 2.0 service, users no longer needed to enter their insurance expiration date or vehicle information manually.
The number of cases where users proceeded to sign a contract with an insurer after comparing premiums also increased by 40% compared to before the introduction of the 2.0 service. The company attributed this to the ability to calculate insurance premiums more accurately.
According to Naver Pay, users saved an average of about 260,000 won on insurance premiums after using the auto insurance comparison service.
The proportion of users who switched from their existing insurer to a small or medium-sized insurance company reached 36%.
According to the Financial Supervisory Service, small and medium-sized insurers account for only 8.3% of the overall auto insurance market. This means the proportion was more than four times higher through Naver Pay.
Naver Pay's auto insurance comparison service is the only one in the industry that allows users to compare insurer-specific benefits such as credit card cashback, bill discounts, and fuel vouchers. It also offers a premium recommendation service based on analysis of users' driving habits.
The overseas travel insurance comparison service has also seen rapid growth. Naver Pay launched the industry's first overseas travel insurance comparison service in July last year. In the first half of this year, the number of comparisons made for overseas travel insurance increased by 250% compared to the second half of last year.
The cumulative number of overseas travel insurance comparisons over the past year was about 2.18 million. Among users who traveled overseas more than twice, 35% used Naver Pay to compare insurance premiums.
In addition, Naver Pay's overseas travel insurance comparison is the only service in the industry that allows users to compare premiums from eight different insurers.
Users can compare 14 key coverage items, including loss of personal belongings, flight and baggage delays, overseas medical expenses, and trip interruption incidents. There is also a promotion that gives users 10% of their insurance premium back in points.
Cho Yena, head of Naver Pay's insurance team, said, "We will continue to enhance our services so that users can compare prices and make informed choices not only for the most popular auto and overseas travel insurance, but also in various areas such as savings insurance and pet insurance."
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