Kakao to give attention to pet insurance coverage, Naver on financial savings plan
By Anna J. Park
Digital-based insurance coverage comparability and suggestion providers can be expanded to areas together with pet insurance coverage, financial savings plans and journey insurance coverage merchandise, as monetary authorities purpose to additional increase the expansion of the native insurance coverage market, in line with business officers, Friday.
Since the Financial Services Commission (FSC), Korea’s prime monetary regulator, promoted and launched insurance coverage comparability providers at numerous fintech platforms earlier this 12 months, surveyed shoppers have reported experiencing elevated advantages, equivalent to lowered insurance coverage premiums.
According to information launched by the FSC, roughly 120,000 individuals have utilized automotive insurance coverage comparability and suggestion providers inside a month of seven fintech firms launching them in early January. Over 6,100 new insurance coverage contracts had been signed in the course of the first month of operation.
The FSC stated that about 60 % of customers of the automotive insurance coverage comparability providers stated they acquired suggestions for insurance coverage with 30 % cheaper premiums in comparison with their present plans. There has additionally been a constructive evaluation from customers concerning the diversified gross sales channels.
Based on the constructive suggestions from shoppers, the insurance coverage product comparability providers available from digital platform firms can be prolonged to pet insurance coverage markets in April. Other insurance coverage merchandise, equivalent to journey insurance coverage, financial savings plans and medical expense insurance coverage, can even be sequentially launched later this 12 months.
As these merchandise have a better potential for reaching new contracts than automotive insurance coverage, platform operators purpose to draw prospects for these merchandise aggressively.
Kakao Pay is planning to be the primary within the fintech business to introduce pet insurance coverage to its insurance coverage comparability and suggestion service beginning as early as late April or early May.
The cellular fee subsidiary of IT conglomerate Kakao has been holding numerous conferences with its companion insurance coverage firms, equivalent to Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance and KB Insurance, in preparation for the launch of the pet insurance coverage comparability service within the second quarter this 12 months.
Naver Pay and Toss, Kakao Pay’s main opponents, are getting ready to supply pet insurance coverage comparability providers within the second half of this 12 months.
Considering the nation’s common pet insurance coverage subscription charge stands at solely round 1.4 % out of seven.99 million pets — the estimated variety of pets within the nation — pet insurance coverage is seen as one of many insurance coverage merchandise with the very best progress potential.
The whole variety of pet insurance coverage contracts held by 10 main insurance coverage firms, together with NH NongHyup, Lotte, Meritz, Samsung, Carrot, Hanwha and Hyundai, as of the tip of final 12 months, has seen a 51.7 % bounce from the earlier 12 months.
While Kakao Pay would be the first digital platform to supply a pet insurance coverage comparability service, Naver Pay is planning to supply a cellular comparability service for financial savings insurance coverage as early as June.
Nine life insurance coverage firms together with the highest three — Samsung Life, Hanwha Life and Kyobo Life — are anticipated to newly present financial savings plan merchandise.
Naver Pay initially deliberate to give attention to launching medical expense insurance coverage and abroad journey insurance coverage comparability providers, but it modified its plans resulting from procedural issues. Those insurance coverage comparability providers can be launched in the course of the second quarter of this 12 months.
“Insurance firms and fintech firms will proceed to cooperate by increasing the scope of data sharing for correct insurance coverage premium calculations and collectively improve fee programs whereas addressing inconveniences raised by customers,” an official from the FSC stated.
