It has been found that South Korean insurers filed for a total of 20 insurance patents last year to reach a new high, and exclusive licenses were granted for three-fourths of them, a record high as well. During the previous five years, the number of such applications had been 10 or so a year.
The insurers’ efforts to come up with new products have to do with a change in regulations regarding their exclusive rights to use such products that was implemented last year. Specifically, the period during which the exclusive rights can be acknowledged was extended from up to six months to up to one year and the penalty applied to a violator was increased from up to 30 million won to up to 100 million won.
The omission of the financial authorities’ pre-examination of new insurance products and clauses, which was implemented in April last year, is adding to the trend as well.
Under the circumstances, the insurers are bringing out unique new products one after another. For instance, Dongbu Insurance’s UBI Driver Insurance launched in April last year provides a discount of 5% for those driving their vehicles in a safe way over 500 km with their smartphones recording traffic violations.