Major property and casualty insurers are set to engage in follow-up discussions aimed at expanding emergency auto insurance services for residents in island and mountainous regions. This initiative comes in response to concerns raised during last year's National Assembly audit, where it was highlighted that subscribers in these areas pay the same premiums as urban residents but are excluded from emergency service coverage.
According to reports from the National Assembly on June 8, a forum is scheduled for July to discuss the expansion of emergency services in remote areas. Participants will include representatives from insurance companies, the Korea Insurance Association, relevant government agencies, and towing and repair firms to explore specific operational plans. Initial discussions were intended to occur before the local elections, but were delayed due to the election schedule.
Previously, five major insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, Hanwha General Insurance, KB Insurance, and DB Insurance—expressed their intention to revise their policies to include coverage for island and mountainous regions. During the National Assembly audit, it was pointed out that vehicle breakdowns, such as battery failures, flat tires, and emergency refueling, can occur regardless of location, yet some insurers classify remote areas as service exclusion zones, causing inconvenience for subscribers.
However, challenges remain before implementation. Emergency services are not provided directly by insurers but are operated through partnerships with local towing and repair companies. The lack of infrastructure in mountainous areas and the need for ferry transport in island regions complicate the application of existing operational models.
The National Assembly and the insurance industry have completed preliminary data collection through the Ministry of the Interior and Safety and the Ministry of Oceans and Fisheries, and are currently reviewing potential service areas, operational methods, and cost-sharing structures. Key issues include the transportation of tow trucks by ferry, response systems after passenger ferry operations cease, and additional cost-sharing measures.
Ultimately, the focus of these discussions is not merely on whether to introduce the service, but on establishing a sustainable operational framework. Alongside policy revisions, discussions will also cover rate calculations, securing partner companies, and cost-sharing strategies.
An industry representative stated, "We agree on the need to address the issue of neglect faced by subscribers in island and mountainous regions," but emphasized that practical reviews considering infrastructure, transportation, and cost issues are necessary.
* This article has been translated by AI.
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