S.K.’s insurance comparison in January 2024 could drive higher premiums

Higher premiums are forecasted for this service versus cyber marketing channels.

South Korea's insurance industry is preparing for the introduction of an insurance comparison and recommendation service in January 2024, Pulse News Korea reported.

Insurers are expected to charge higher premiums for products sold through this service compared to those sold through their own cyber marketing (CM) channels, reflecting the commissions paid to platform operators like Naver Corp. and Kakao Corp. 

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The new service was designated as an innovative financial service by financial authorities in July 2023. 

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The platform fees are expected to lead to an increase in premiums, with the commission taken by platforms suggested to be within the range of 4% of the premium for auto insurance policies and between 15% to 20% of face-to-face sales fees for savings and guaranteed insurance policies.