The non-life insurance industry is rolling out free indemnity and windstorm and flood insurance for small business owners of local governments. The products are planned so that no premiums are collected from enrollees. Last year, the insurance industry created a fund in consultation with the financial authorities to launch products for small business owners of local governments, and the support program will go into full swing this year.

According to the non-life insurance industry on the 15th, five major non-life insurers plan to launch "win-win comprehensive (indemnity) insurance" and "win-win windstorm and flood insurance" for small business owners in North Jeolla Province starting in April. The insurers are currently setting detailed coverage items and undergoing review by the Financial Supervisory Service to ensure regulatory compliance. For the win-win comprehensive insurance, they are also considering paying a lump-sum consolation benefit upon receiving an injury diagnosis.

Shoppers browse the stalls at Gyeongdong Market in Dongdaemun-gu, Seoul. /Courtesy of News1

The win-win insurance will be operated by selecting eligible enrollees based on the lists of small business owners held by each local government. In North Jeolla Province, small business owners with annual sales of 300 million won or less are eligible, and other local governments are currently discussing enrollment conditions.

The life insurance and non-life insurance industries each created 15 billion won last year, totaling 30 billion won, as a win-win fund to ease small business owners' premium burdens. About 90% of the win-win insurance program will be funded from this pool, with the remainder covered by local government budgets. Given the limited resources, only as many people as can be accommodated will be selected as eligible enrollees.

Financial Services Commission Vice Chair Kwon Dae-young (third from left in the front row) poses for a commemorative photo with attendees at the agreement ceremony on the 26th to promote win-win products in the insurance sector. From left in the front row: Lee Moon-hwa, president of Samsung Fire & Marine Insurance; Lee Byung-rae, chairman of the General Insurance Association of Korea; Vice Chair Kwon; Kim Cheol-joo, chairman of the Korea Life Insurance Association; Hong Won-hak, president of Samsung Life Insurance; Lee Kyung-geun, president of Hanwha Life Insurance. From left in the back row: Lee Dong-yeop, Insurance Division Director at the Financial Services Commission; Song Choon-soo, CEO of NongHyup Property & Casualty Insurance; Koo Bon-uk, president of KB Insurance; Lee Seok-hyun, CEO of Hyundai Marine & Fire Insurance; Cho Dae-gyu, president of Kyobo Life Insurance; Kim Jae-sik, vice chairman of Mirae Asset Life Insurance; Ahn Chang-guk, Director General of the Financial Industry Bureau at the Financial Services Commission. /Courtesy of Financial Services Commission (FSC)

In local governments other than North Jeolla, which was the first to sign a business agreement with the General Insurance Association of Korea last year, the products are scheduled to launch in July this year. The association is conducting a review to select eight additional local governments.

An official at a non-life insurer said, "At the association level, we are encouraging non-life insurers to participate."

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