Insurance for short-term, minor incidents gain ground

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Short-term small coverage insurance products, including travel insurance, golf insurance and pet insurance, are gaining popularity in the 20-39 age group, driven by low premiums and simple, mobile-mediated subscription processes, market watchers said Friday.

According to the insurance industry, over 171,000 people subscribed to ALICE, a small-coverage insurance platform operated by Lotte Insurance, as of the end of June. Nearly half were in their 20s and 30s.

Also popular is pet insurance offered by Carrot Insurance and Seoul Metro delay insurance offered by Samsung Fire & Marine Insurance.

Meanwhile, the traveler's insurance market has grown 19 times over the past three years, driven by pent-up postpandemic demand for overseas tourism.

Over 1.73 million subscribed to new travel insurance packages provided by nine non-life insurers in the first half of this year, up 32 percent compared to the same period last year.

More than half of subscribers, or 54.6 percent, were in their 20s and 30s, followed by those in their 40s (21 percent).

Domestic airports are also reporting a steady increase in international flight passengers, with the total reaching close to 89 million last year.

The number of overseas travelers already reached a record 46.02 million as of the end of June.

Travel insurance covers medical expenses, travel cancellation fees, lost baggage and flight delays.

The products offer up to 100 million won ($72,000) for death or permanent disability that occurred from injury. The daily premium is just 1,000 won per person.

“A strong rebound in the recovery of global travel demands will continue to lead a marked growth in travel insurance sales,” an industry official said.