GENERAL INSURANCE
KB INSURANCE

KB Insurance has launched an on-demand insurance product that offers a time unit insurance coverage for those working in delivery services, the first such product to be introduced in South Korea, according to the company.

The subsidiary of KB Financial Group signed a memorandum of understanding with two firms -- Woowa Brothers, operator of the country’s largest mobile food ordering and delivery service app, and Smallticket, a community-based insurance marketing platform -- earlier this month.

The deal was signed by KB Insurance Vice President Kim Kyung-sun, Woowa Brothers CEO Yoon Hyun-jun and Smallticket CEO Kim Jung-eun at the KB Insurance headquarters in Seoul.

Launching the on-demand insurance in Korea is significant, as well as the cooperation among insuretech firms -- convergence of insurance and technology -- to boost the sharing economy.

 

Despite the growth of delivery service app market, there is no insurance product covering motorcycle messengers’ accidents. The newly launched KB insurance product helps minimize the burden of extra insurance cost after accidents caused during delivery services.

“Until now, delivery service workers in Korea had difficulties buying insurance due to the high cost. I hope our new on-demand insurance can act as a ‘stabilizer,’” said Kim Min-ki, managing director of Auto Insurance Business Line at KB Insurance.

KB Insurance said it will team up with various local mobile platforms, vowing to create a better social environment. Doing so, the KB Financial Group’s unit is working on establishing strategic alliances with other mobile platforms in fields such as finance, education, automobile and lifestyle.

The company has also been recognized for its successful foray overseas. Most recently, it announced on Nov. 5 that its Chinese entity has received the AA grade in the customer service evaluation by the China Banking and Insurance Regulatory Commission. It is the first highest grade achieved by a foreign insurance firm. Of the 87 insurance companies operating in China, only five Chinese firms including PICC, PINGAN and CPIC received the AA grade, the company said.

By Jie Ye-eun (yeeun@heraldcorp.com)