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By Anna J. Park
As major local insurers are set to launch "COVID-19 vaccine insurance" products at the end of the month or early July, concern is rising that they are more interested in capitalizing on public anxiety about the vaccines, rather than serving their customers' interests.
According to the industry, various local insurers ― including DB, KB, Hyundai Marine & Fire and Kyobo Lifeplanet ― plan to launch vaccine insurance, which is aimed at customers seeking coverage in the event of side-effects from vaccination.
However, industry watchers warned customers to pay extra attention to specific details of the so-called "vaccine insurance." Contrary to public expectation, what these policies insure customers against is limited to anaphylaxis ― a severe allergic reaction. Other side-effects, no matter how serious they might be, are not covered by the policies.
"Most of these vaccine insurance policies only cover customers for anaphylaxis, out of many other possible side-effects from the vaccines out there," a market insider noted, highlighting that the coverage for someone diagnosed with this would only be around a few million won.
Currently, only two vaccine insurance plans are available locally ― one from Samsung Fire & Marine and the other from Lina Korea ― and both only cover for anaphylaxis induced by COVID-19 vaccines.
As Samsung Fire's product was the first to be launched ― in late March ― the firm was granted exclusive rights to promote the vaccine insurance policy by the General Insurance Association of Korea for three months until late June. Lina Korea was an exception as it launched its policy at almost the same time as Samsung.
Because of this three-month rule, all other local insurers planned to launch similar vaccine insurance at the end of this month, when the exclusive sales rights expire.
Fintech platform providers, including Banksalad and Toss, are also jumping into the market ― Banksalad offers vaccine insurance policies from Lina Korea to its mobile application customers through marketing events.
Toss has also been taking users' prior reservations for DB's policy which will be officially available from on its platform next month. The insurance pays 1 million won ($883) to those diagnosed with anaphylaxis. The fintech company formed a partnership with DB last month.
However, some observers have questioned whether Toss' receiving vaccine insurance reservations violates Samsung Fire's sales rights, as the three-month period has yet to expire. Toss officials responded that the firm's move is unrelated to Samsung's exclusive right, as it does not sell the insurance policy directly.
