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From subway delays to pet accidents, insurers roll out quirky policies for everyday mishaps
A commuter taps a transit card at Euljiro 1-ga Station on Seoul Metro Line 2, June 29. Yonhap
By Jun Ji-hye
Insurance companies are introducing unique customized coverage for everyday situations, such as subway delays and pet-related accidents, industry officials said Wednesday.
Although these offerings generate limited immediate profit due to their low premiums, they serve as a strategic tool to attract younger consumers who may become loyal long-term policyholders, they said. This potential has prompted insurers to invest more in developing and expanding these innovative insurance plans.
Samsung Fire & Marine Insurance recently introduced a new policy that compensates commuters for subway delays in the Seoul metropolitan area.
If a subway is delayed for over 30 minutes, the insurance provides coverage for alternative transportation expenses, such as taxi or bus fares, once a month, up to 30,000 won ($22).
The policy costs only 1,400 won annually. To make a claim, policyholders need to submit their transit card number along with a receipt for the alternative transportation used. The claim is automatically processed and paid out immediately after the system confirms the delay.
Kyobo Life Insurance launched a new mini policy tailored to reading-related health issues, providing coverage for ailments such as eye strain, muscle and joint disorders, and spinal conditions that can develop from prolonged reading.
With premiums in the 1,000-won range, the policy offers an annual payout of up to 100,000 won if the insured is diagnosed with one of the covered conditions and undergoes surgery directly related to that diagnosis.
K-pop fans wait to get tickets to the MyK FESTA at Olympic Park in Seoul, June 19. Yonhap
Lotte Insurance rolled out an accident insurance plan designed to protect concertgoers from potential injuries and ticket scams.
The policy offers coverage for injuries that may occur at crowded concerts and festivals, including benefits for fracture surgeries. It also includes protection against fraud tied to fan-related activities. If a policyholder is scammed while buying concert tickets through secondary market platforms, the plan compensates actual losses up to 500,000 won.
Carrot General Insurance's new policy covers various incidents that may occur while walking a dog. With a basic premium of 2,000 won, the plan reimburses actual damages or expenses if the dog injures another person or goes missing during the walk.
Despite their modest profits, these mini insurance products have a straightforward design and simple sign-up process that make them easier to understand than conventional insurance, according to industry experts. This helps lower insurance barriers for younger consumers and allows them to gain insurance experience more naturally.
"Recently launched mini insurance products are tailored to the digital-friendly lifestyles and financial consumption patterns of the MZ generation," said Choi Yoon-kyung, a researcher at KB Management Institute, an affiliate of KB Financial Group. "The trend of mini insurance targeting the MZ generation with customized coverage is expected to continue moving forward."