Surge in Overseas Travel Boosts Insurance Sales
The travel insurance market in South Korea is experiencing rapid growth as overseas travel continues to surge. Last year, travel insurance premiums hit a record high of 90.2 billion won, representing a 16.7% increase from the previous year. The first quarter of this year has already seen premiums amount to 22.6 billion won, exceeding the same period last year.
The growth is driven primarily by overseas travelers, with over 90% of travel insurance demand coming from this group. In response, major insurers such as Samsung Fire & Marine Insurance are offering competitive pricing. For instance, Samsung Fire & Marine Insurance offers overseas travel insurance at 3,460 won for a 41-year-old male, undercutting competitors like Shinhan EZ Insurance and Kakao Pay Insurance.
Other large insurers are also entering the market with specialized products. NH Nonghyup Property & Casualty Insurance offers a 20% discount on its “Overseas Travel Insurance” when subscribed through direct channels. KB Insurance’s “KB Direct Overseas Travel Insurance” is priced 55% cheaper than its offline offerings, with coverage for food poisoning, infectious diseases, and theft during absence.
The market shift is significant as it moves from being dominated by mobile-based small insurers to larger companies leveraging their economies of scale. An industry insider noted that the success of Kakao Pay’s safe return bonus feature has prompted larger companies to enter the market, recognizing the potential profitability.
