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While digitalization and non-face-to-face services have become the norm for financial institutions such as banks and credit card companies, the insurance industry is lagging behind compared to other financial sectors.

In particular, while non-life insurers are selling various microinsurance products, such as car insurance and travel insurance through digital channels, life insurance products are still sold predominantly through face-to-face interactions.

As of October, the initial insurance premiums through face-to-face channels for all life insurance companies amounted to 18.47 trillion won ($12.7 billion), a 35.8 percent increase from 13.6 trillion won during the same period of the previous year.

A notable trend in face-to-face channels is the growth in initial premiums from insurance agents.

As of October, the initial premiums both from insurers' exclusive agents and those affiliated with insurance sales subsidiaries, called general agencies, totaled 2.5 trillion won, a 41.5 percent increase compared to 1.77 trillion won the previous year.

Among life insurers, the one with the highest initial premiums from general agents was Hanwha Life. In April 2021, the firm implemented a separation of sales and distribution, and launched its general agency, Hanwha Life Financial Service, which currently has the largest number of agents among domestic agencies.

The initial premiums from Hanwha Life's agents amounted to 224.2 billion won, a 23.1 percent increase from a year earlier.

On the other hand, life insurers' initial premiums through cyber marketing channels, where contracts are made online, actually decreased 33.6 percent from 138.7 billion won to 92.1 billion won.

Industry officials cite the complex product structures and enrollment procedures as key factors preventing the activation of online channels.

They noted that most life insurance products are difficult to understand based solely through online descriptions, making it hard to determine what kind of coverage is provided in different situations.

“To expand online marketing channels in the life insurance industry, enhancing the product information and trustworthiness of recommendations provided to consumers is essential,” an official from one of the life insurers said.