In 2016, the aggregate value of products sold online by Korean non-life insurers reached KRW 2,210.7 billion, up 51% from the previous year. This is almost five times larger than KRW 423.5 billion in 2012. Accordingly, the share of online sales in total non-life insurance sales nearly tripled from 0.82% to 2.61% during the four-year period.

Similarly, life insurance sales on the internet almost quintupled from KRW 1.88 billion in 2012 to KRW 9.27 billion in 2016, which accounted for 0.084% of the total, a tenfold jump from 0.008% four years ago.

The above figures indicate that non-life insurers are selling more products online than their life counterparts. This is largely because the sale of non-life policies such as auto insurance is relatively active on the internet compared to life products, most of them still being sold through faceto-face channels.

The biggest weapon that online insurance has is price competitiveness. With low business expenses involved, prices online are up to 53% lower than offline. In
particular, some savings-type products on the internet offer a high interest rate of 3% on a yearly basis.

Yet, there is always a downside. Since those who want to buy insurance online should select coverage types and calculate premiums by themselves, this non face-to-face channel may not be suitable for products that require comprehensive consultation on planning with regard to coverage.

Korean Reinsurance Company published this content on 14 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 July 2017 15:49:09 UTC.

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