Over 700,000 foreign nationals subscribe to insurance
More than 700,000 foreign nationals are estimated to have subscribed to various kinds of insurance in Korea as more foreign nationals are entering and living in the country, according to a study, Monday.
The data released by Korea Insurance Development Institute showed more than 690,000 foreign nationals were subscribed to at least one insurance product in 2022.
While the data has not been updated since then, the institute said the number of subscribers is estimated to have surpassed the 700,000 mark in 2023.
Citing separate data from the Ministry of Justice, the institute noted travel entry rules have been eased in the post-pandemic era and that the number of foreign nationals totaled 2.5 million as of December 2023.
The number was the highest since 2019.
It also accounted for 4.89 percent of Korea’s entire population, meaning the country is close to turning into a multicultural society where foreign nationals make up at least 5 percent of the entire population.
Under the circumstances, 41 percent of foreign residents nationwide were subscribed to insurance in 2022, which is less than half the rate of Koreans at 86 percent.
“We expect that the rate will go up,” the institute said. “Foreigners are increasingly getting married, getting jobs and settling here long term and the insurance market for them has further growth potential.”
In particular, the institute pointed out that the justice ministry rolled out a five-year immigration policy plan in December 2023 to attract qualified workers amid Korea’s labor shortage. Of the 700,000-plus subscribers, those with long-term non-life insurance plans totaled 420,000.
Some 310,000 were subscribed to life insurance plans and another 220,000 to vehicular insurance plans.
To attract more international customers, insurance companies said they are expanding corresponding marketing and sales campaigns.
Samsung Life Insurance said it was the first in the industry to launch a team aimed at managing foreign subscribers in December 2022.
The team started with 116 employees and was expanded to 149 the following year.
Additionally, the company has hired more than 600 insurance planners from China, Russia and other countries in line with customers’ language needs.
Hanwha Life Insurance said foreign nationals account for as many as 80 percent of insurance planners at some of its branches that include staff from China and Vietnam.