The Korea Federation of Small and Medium Enterprises (KFSME) will offer a 5% discount on premiums for product liability (PL) insurance and mutual aid products to small and mid-sized manufacturers that have built smart factories, reported the ChosunBiz.
The KFSME through this initiative is keen is to reduce the insurance burden on corporations that improved productivity and process efficiency, helping bolster manufacturing competitiveness.
The KFSME PL insurance is the country's first group insurance jointly developed in 1999 with the Ministry of SMEs and Startups and it covers third-party liability for damages from product defects. Operated through a joint purchasing model, premiums are up to 20–28% cheaper than those of general insurers. Corporations that have built smart factories can receive an additional 5% discount on top of that.
A 5% discount also applies to mutual aid products that cover fire, property damage, and general liability. Mutual aid products are 10–25% cheaper than those of general insurers, and they also narrowed blind spots by minimising subscription restrictions for high-risk sectors that general insurers find difficult to underwrite, such as wood processing and plating.