According to users who compared car insurance on Naver Pay, those who received recommendations for lower premiums saved an average of 270,000 KRW compared to their previous insurance plans. This reveals that the Naver Pay ‘Car Insurance Comparison and Recommendation’ service is establishing itself as a channel that assists financial consumers in making rational choices.
Naver Pay released usage metrics for its ‘Car Insurance Comparison and Recommendation’ service, which launched in January. From the service’s launch on January 19 until February 8, approximately 150,000 comparisons were made through the Naver Pay ‘Car Insurance Comparison and Recommendation’ service.
About 59% of users who compared car insurance on Naver Pay were recommended products with lower premiums than their previous insurance. Those users were presented with products that had an average of 270,000 KRW lower premium than their existing plans. Furthermore, 48% of users who compared car insurance on Naver Pay proceeded to the insurance company’s website to enroll in a new policy.
The ability to compare and receive recommendations from various insurance companies during the car insurance renewal process has also broadened the selection available to financial consumers. Among users who moved from Naver Pay to an insurance company website, 44.6% transitioned to smaller insurance companies with less than 10% market share.
As of February 15, there have been cases where users saved approximately 80% on premiums through the Naver Pay car insurance comparison and recommendation service. For instance, one Avante owner, who found the lowest premium from among 10 insurance companies through Naver Pay, was recommended a car insurance costing 720,000 KRW, which is 2,930,000 KRW less than the previous premium of 3,650,000 KRW during a lottery event where Naver Pay points were awarded.
A Naver Pay representative stated, “By using the car insurance comparison and recommendation service, one can compare premiums from various insurance companies without maintaining the existing coverage and can choose only essential coverages suited to their situation. This enables a rational price proposal from multiple providers at once.”
Currently, users comparing and switching car insurance through Naver Pay have reported savings ranging from approximately 1% to 80% on their premiums. The average existing premium among users is 870,000 KRW, and those users were recommended a new premium averaging 600,000 KRW, which is around 30% or 270,000 KRW less than their previous plan. Additionally, the discrepancy between the highest and lowest premiums suggested to users was about 210,000 KRW on average.
Naver Pay has formed partnerships with all non-life insurance companies participating in the Financial Services Commission’s ‘Insurance Product Comparison and Recommendation Service,’ including Lotte Non-Life, Meritz Fire, Samsung Fire, Carrot Non-Life, Hana Non-Life, Hyundai Marine, Heungkuk Fire, AXA Non-Life, DB Non-Life, and KB Non-Life. Users with car insurance expiring within 30 days can easily compare car insurance from 10 firms. If they are enrolled in Naver Pay’s asset management service ‘My Assets,’ they can access quicker comparisons without entering information regarding expiration dates or vehicle specifics.
A representative from Naver Pay commented, “The ‘Car Insurance Comparison and Recommendation’ service of Naver Pay clearly demonstrates that it provides a channel for drivers to make rational choices regarding car insurance, showing strong interest from many drivers. As the service is still in its early stages, we continue to improve it through collaboration with financial authorities and partner insurers so that consumers can feel more of its benefits, and we hope this service will become an essential tool for all drivers in the future.”
Lee Sang-jin daedusj@autodiary.kr