Insurance companies roll out products targeting young Koreans

Insurance companies, typically some of the most conservative firms in finance, are rolling out subscription services and setting reasonable payment terms to meet the needs of young Koreans in a bid to secure future customers.

Hanwha Life Insurance said Thursday it has launched three subscription insurance products. Unlike other insurance products that dole out money only when customers are deceased, injured or hospitalized, the company offers benefits related to daily consumption.

“The insurance industry is on the verge of changing its DNA to secure customers of younger generations. Since banks, credit card companies and other financial institutions are already going all out to target the younger generations, we need to adapt to the paradigm shift as well,” a Hanwha Life Insurance official said.

The company‘s three subscription insurance products expire after one year. Due to the short-term maturity, they do not offer any life insurance coverage.

Life Plus E-mart Discount Insurance gives E-mart certificates worth 30,000 won ($26) and 5,000 won discount coupons to those who have paid insurance premiums of more than 30,000 won. It saves 1,500 won every month and gives back 18,000 won in cash after a year.

Life Plus GS25 Convenience Store Insurance offers GS25 gift certificates for four cans of beer at 9,000 won as well as beer coupons. The insurance premium is set at 9,500 won and it returns 6,000 won after the expiration.

Customers can also enjoy a 47 percent discount benefit from Life Plus Fresh Easy Meal Kit Insurance. It offers Fresh Easy’s best meal kit items at a monthly payment of 24,000 won or 48,000 won. After one year, it pays back one month’s insurance premium.

Carrot General Insurance also released a car insurance product last year targeting the consumption patterns of younger people. The company’s “Per Mile Car Insurance” allows customers to pay a monthly insurance rate based on their mileage.

“Unlike many other insurances that require customers to pay up front -- if you drive less, you pay less. We try to satisfy the needs of younger generations that want to make reasonable insurance payments,” a Carrot General Insurance official said.

According to the company, it had attracted up to 200,000 customers as of June.

The company also launched a credit card last week with local card issuer KB Kookmin Card. Carrot KB Kookmin Credit Card gives up to a 17,000 won discount every month to those who make automatic payments of the insurance premium.

By Byun Hye-jin (hyejin2@heraldcorp.com)