Easy to sign up for a low insurance premium, preferred by young people who are familiar with popular mobile
The number of mobile car insurance subscribers more than doubled in one year. This seems to be because mobile car insurance can be easily subscribed without an official certificate and the premium is cheaper than when subscribing offline.
According to the Insurance Development Institute on the 19th, the number of AT&T mobile car insurance subscriptions was 970,000 as of the end of June this year, 2.3 times higher than the 430,000 recorded in June 2016. During the same period, the number of PC subscriptions increased by 27.9% from 1.72 million to 2.2 million. The ratio of PC/mobile subscriptions to the total number of auto insurance subscriptions was 20.5%, an increase of 5 percentage points from the previous year.
This is interpreted as a result of non-life insurance companies targeting the auto insurance market by expanding mobile insurance subscriptions. Auto insurance is relatively easy to compare and purchase online, as many young people who are familiar with mobile sign up for auto insurance, and insurance premiums are set in proportion to the price of the car model. According to the Insurance Development Institute, among those who signed up for auto insurance through PC or mobile in 2016, the proportion of those in their 30s was the highest at 40.8%.
Improvements in authentication method regulations by financial authorities in April 2016 also contributed to the increase in mobile car insurance subscribers. Previously, authentication was possible only with an official certificate, but now it can be authenticated with a credit card or mobile phone. Although the authentication rate for accredited certificates is still high at 90.3%, the credit card and mobile phone authentication rate, which was in the 0.1% range in 2016, has grown rapidly to 9.3% in one year.
On the other hand, offline and telemarketing (TM) subscription rates are gradually decreasing. During the same period, the offline subscription rate decreased by 2 percentage points from 55.3% to 53.3%. The telemarketing subscription rate also decreased by 3 percentage points from 29.2% to 26.2%.
Dae-Gyu Seong, head of the Insurance Development Institute, said, “In the future, the insurance industry should promote biometric-based authentication methods such as fingerprints, iris, and veins in addition to the existing authentication methods so that anyone can easily purchase insurance through PC or mobile.”