Personal accident insurance premiums for delivery riders are set to fall by 20-30% from current levels, with existing discount rates to be retained when motorcycles are replaced, like the treatment under auto insurance.
The Financial Supervisory Service (FSS) said that it will move ahead with a rationalisation of the two-wheeled vehicle insurance pricing system, aimed at easing the premium burden on motorcycle users, including delivery riders, while strengthening consumer protection.
The average annual insurance premium for two-wheeled vehicles used for commercial transportation stands at KRW1.03m, significantly higher than the KRW179,000 paid for motorcycles used for personal purposes. As a result of the cost gap, many delivery riders opt for mandatory insurance policies with limited coverage, with comprehensive insurance penetration among commercially used two-wheeled vehicles at just 26.3%.
Accordingly, the Financial Supervisory Service said it will promote the use of data from the Insurance Development Institute to enable a more accurate and reasonable calculation of personal injury insurance premiums for commercially used two-wheeled vehicles, with the changes expected to be implemented by the Q12026.