Insurers in South Korea are expanding their range of children's insurance products as they look to rope in customers for the long-term.
According to a report by The Korea Times, as insurers race to lock in long-term customers, buoyed by government efforts to tackle low birth rates and ease the cost of child rearing, roping in children via niche insurance programmes for children is a step in that direction.
According to an industry estimate, the market for people aged under 15 is worth around KRW9.4tn ($6.18bn) per year. The size of the market has spurred the evolution of new products at a rapid pace. Some have introduced coverage that increases over time, while others extend protection beyond childhood, spanning from the prenatal stage through adulthood.
The scope of coverage is also broadening. Once centred on cancer and critical illness payouts, policies are increasingly designed around a wider spectrum of risks, including mental health care, counselling and even school violence.