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An increasing number of insurance companies have launched small-sum, short-term products that boast high accessibility through digital enrollment and affordable premiums, in a bid to attract the MZ Generation, according to industry officials, Monday. The MZ Generation includes Millennials and Generation Z, born between the early 1980s and early 2010s.

Lotte Insurance recently launched a ski insurance plan that covers injuries sustained while skiing or snowboarding, for a premium of just 1,800 won ($1.23).

The product, available to customers aged 19 to 59, comes in two plans. One covers only injury-related risks such as fracture diagnosis, surgery and cast treatment costs. Another provides comprehensive coverage from the moment the customer leaves home for a ski trip until they return, including protection against traffic accidents and other risks. The premium for this one is 3,200 won.

According to KB Financial Group's research institute, the insurance subscription rate of the MZ Generation in 2019 was about 10 to 15 percentage points lower than those of all age groups for both life and non-life insurance.

However, around 50 percent of MZ respondents reported having purchased or attempted to purchase insurance via computers or mobile devices, the highest among all age groups. This suggests significant potential for digital platform-based insurance sales.

As a result, insurers are increasingly developing microinsurance products with lower premiums and simpler coverage to align with MZ lifestyles.

"Insurance companies will continue investing in coverage tailored to the needs of the MZ Generation and enhancing their digital competitiveness to overcome the insurance market's decline, driven by various factors such as COVID-19, low interest rates and slow economic growth," the research institute said in its report.

Tongyang Life Insurance, for its part, introduced a mini flu insurance plan priced between 2,000 won and 3,000 won last month.

This product provides coverage by paying out benefits if the insured is diagnosed with influenza and prescribed antiviral medication for treatment.

In November, Kyobo Life Insurance introduced a product that covers various conditions that may arise while reading.

The plan provides coverage for eye, muscle and joint disorders as well as spine-related conditions.

For a 40-year-old male customer with a coverage amount of 10 million won, the one-time premium is only 1,290 won.