Electronic sales - via the Internet and phone - of motor insurance in South Korea are doing better than conventional auto insurance sales even though the global economic turmoil has resulted in a steep fall in car sales, reports the Joong Ang Daily.
The online market share grew to about 20% in January from less than 19% in the last quarter of 2008, because of bargain hunting. E-auto insurance sales amounted to 171.6 billion won (US$122 million) last month, or a fifth of all auto insurance sales for the month.
According to data provided by General Insurance Association of Korea and individual member insurers, auto insurance sales last month totaled 858.3 billion won, 9.3% lower than the 946.7 billion won sold in January 2008.
The reasons for the decline include a fall in the purchase of new cars. In January, Korean carmakers sold 73,537 new vehicles, 24% less than a year earlier. Furthermore, many people are buying used cars which attract less expensive insurance premiums.
Some car owners also cut costs by buying insurance directly from insurers. Premiums payable in e-insurance is on average 15% lower than those in conventional sales because online sales do away with consultants and a physical network. Of the 15 car insurance companies in South Korea, 11 of them sell policies online. Among the 11, four sell policies only through the Internet.
The online market share grew to about 20% in January from less than 19% in the last quarter of 2008, because of bargain hunting. E-auto insurance sales amounted to 171.6 billion won (US$122 million) last month, or a fifth of all auto insurance sales for the month.
According to data provided by General Insurance Association of Korea and individual member insurers, auto insurance sales last month totaled 858.3 billion won, 9.3% lower than the 946.7 billion won sold in January 2008.
The reasons for the decline include a fall in the purchase of new cars. In January, Korean carmakers sold 73,537 new vehicles, 24% less than a year earlier. Furthermore, many people are buying used cars which attract less expensive insurance premiums.
Some car owners also cut costs by buying insurance directly from insurers. Premiums payable in e-insurance is on average 15% lower than those in conventional sales because online sales do away with consultants and a physical network. Of the 15 car insurance companies in South Korea, 11 of them sell policies online. Among the 11, four sell policies only through the Internet.
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