Luxury import cars drive South Korean non-life premiums in 2020

Top general insurers had  $16.82b in premiums through credit cards in 2020.

South Korean general insurers reported higher motor insurance premiums in 2020 due to demand for luxury import cars, according to media reports.

The country’s top five non-life insurers, namely Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, KB Insurance and Meritz Fire & Marine Insurance, reported a combined $16.82b (KRW18.89t) in premium revenue through credit card payments last year.

Premium payments made through credit cards have jumped 10.2% YoY to $4.37b (KRW4.89t) during the first three months of 2021. The ratio of credit card payments in total premium has also grown from 26.2% in 2018 to 30.3% in 2020.

Online insurance purchases are also responsible for the jump in credit card payments. Auto insurance purchases on non-contact channels in 2020 took up 43.3%, higher than 37.6% in 2018.

Auto insurance rates for imported cars are almost 3.6 times higher than those for domestic brand vehicles.