As accidents caused by confusing the accelerator and brake pedals increase and the government speeds up the rollout of "pedal misapplication prevention devices," insurers are also rolling out riders that discount premiums for vehicles equipped with the devices. If accidents decrease, insurance payouts fall, allowing loss ratios to be managed stably. A pedal misapplication prevention device controls the vehicle when a driver mistakenly presses the accelerator instead of the brake.
According to the Korea Transportation Safety Authority (TS) on the 12th, 109 of 149 suspected sudden unintended acceleration accidents last year (73.2%) were confirmed to be caused by pedal misapplication. Samsung Fire & Marine Insurance(000810) A study by the Traffic Safety Culture Research Institute found that related accidents increased 2.3 times, from 66 in 2021 to 153 last year. During the same period, deaths rose 3.4 times, from 15 to 51. Drivers age 60 and older accounted for 70.5% of all accidents.
With pedal misapplication accidents surging, the government and local governments are expanding distribution of the devices, focusing on vehicles driven by older drivers. The Ministry of Land, Infrastructure and Transport and TS plan to install the devices this year in 3,260 taxis and small trucks driven by people age 65 and older. In addition, the government plans to mandate installation of pedal misapplication prevention devices on new passenger cars and small trucks starting in 2029.
Anticipating accident prevention effects, insurers are encouraging wider adoption by offering premium discounts. Hanwha General Insurance(000370) in April launched the industry's first discount rider for pedal misapplication prevention devices. A 5% premium discount applies not only to vehicles equipped with the device as a standard or optional feature at delivery, but also to vehicles that have installed the misapplication prevention device "Dr. Safe," which received the Ministry of Land, Infrastructure and Transport (MOLIT) regulatory sandbox approval.
Starting on the 21st of last month, Hyundai Marine & Fire Insurance(001450) added pedal misapplication driver-assist devices to the eligible items under its "advanced safety device installation discount rider," increasing the number of eligible devices from seven to eight. Depending on the number of installed devices—such as lane departure warning, forward collision warning, and smart cruise control—as well as vehicle type and model year, premiums are discounted by up to 24.1%. However, only devices installed as standard or optional features at delivery are recognized; products installed separately after delivery are excluded from the discount.
The industry expects that as more vehicles install pedal misapplication prevention devices, more insurers will introduce related riders. An insurance industry official said, "If adoption of the rider expands, related accidents will decrease and auto insurance loss ratios will improve," adding, "It could also help attract new customers, strengthening product competitiveness."