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Wide gap in auto insurance exists online as well as offline
- Up to 77.6% and 66.9% for online and offline, respectively
- Comparison disclosure system should be extended including provision of comparison information on auto insurance
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Offline auto insurance was found to have a gap as much as 11.2% to 77.6% at the lowest and highest, respectively. And, for online as well, there exists a big gap as much as 8.5% (at a minimum) and 66.9% (at a maximum).
The Korea Consumer Agency (President: Kim Young-seen, www.kca.go.kr) has conducted a comparative analysis of various facts including insurance emergency road service, and stability (solvency margin ratio) based on 192 different subscription requirements targeting 14 online and offline non-life auto insurance companies during Oct. ~ Dec., 2010 and found these results.
Online insurers such as Hyundai Hi-Car Direct and Meritz Fire & Marine Insurance were found to charge comparatively expensive auto insurance, whereas Samsung Non-life Insurance and Hanwha Non-Life Insurance offered comparatively cheap premium. Meanwhile, for offline car insurers, Chartis Insurance was found to charge high-priced insurance, while Hanwha Non-life Insurance offered cheap insurance.
As for special contractual terms insurance for emergency road service for online, Hanwha Non-Life Insurance was found to charge expensive insurance in general, while AXA General Insurance charged cheap. For offline insurers, Hanwha Non-Life Insurance, Green Non-Life Insurance, and Heungkuk Fire&Marine Insurance were found to charge relatively expensive premium, whereas Samsung Non-life Insurance and Dongbu Insurance offered cheap premium. For insurance for emergency road service as well, online insurers charged less than their offline counterparts did and the service premium for large-sized vehicles was found to be cheaper than that for small-sized vehicles.
Based on these findings, the Agency has proposed a plan to improve the disclosure system for providing sufficient product choice information on car insurance products to the Financial Services Commission and provided ‘Consumer guidelines for subscribing to auto insurance’ and ‘How to select and buy car insurance policy based on comparison information’ for consumers’ reference.
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Supplementary coverage
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Park, Jae-gu, Head of Consumer Transaction Team, Consumer Policy Research Office (☎ 02-3460-3301)
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Kim, Chang-ho, Head Researcher of Consumer Transaction Team, Consumer Policy Research Office (☎ 02-3460-3307)
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