Kakao Pay long-term overseas stay insurance more than doubles subscribers in a year

Overseas illness claims account for 79% of payouts

Local re-enrollment rate hits 20% with easy extension

The number of policyholders enrolled in Kakao Pay's long-term overseas stay insurance more than doubled in a year, the company said Monday. Demand has expanded beyond the 20- and 30-somethings preparing for study abroad or working-holiday programs to include people in their 40s planning extended stays with family or taking overseas work assignments.

According to Kakao Pay Insurance, policyholders for its long-term overseas stay insurance — marketed as the "Overseas N-Month Living Insurance" — rose 108 percent in the January–July period compared with the same period last year. While the product initially drew mainly younger customers pursuing study abroad or working-holiday visas, enrollment among people in their 40s preparing for family relocations or overseas postings has grown in recent months.

Among coverage configurations, the do-it-yourself, or DIY, plan — which lets policyholders build their own coverage — was the most popular at 38 percent. The Basic plan followed at 25 percent, Light at 21 percent and Plus at 16 percent.

Under the DIY plan, policyholders can set their own coverage limits for overseas hospital costs from injuries or illness and for emergency rescue and repatriation expenses, ranging from 10 million won ($7,180) up to a maximum of 200 million won. Optional riders such as liability coverage can be added, and unnecessary items excluded.

Kakao Pay Insurance revised the product in December last year, raising the coverage ceiling for overseas hospital costs from injuries or illness and for emergency rescue and repatriation expenses to a maximum of 200 million won each.

Among actual claims paid during overseas stays, illness-related medical expenses accounted for the largest share. The longer a person stays abroad, the greater the risk of incurring unexpectedly high medical bills from unforeseen illness.

Overseas illness medical expenses made up 79 percent of all claims paid, with overseas injury medical expenses accounting for 18 percent. The average payout was 255,563 won. The largest single payout — 26.21 million won — went to a policyholder treated abroad for Mycoplasma pneumonia.

By destination, English-speaking countries including Australia, the United States, Canada and the United Kingdom accounted for about 36 percent of all enrollments. The countries with the highest number of claims were Vietnam, Australia, Malaysia, China and Thailand, in that order.

About 20 percent of policyholders re-enrolled while still abroad. Policyholders who remain overseas after their coverage period ends can renew through KakaoTalk without returning to Korea, driving steady re-enrollment demand among long-term travelers. Claims can also be filed through KakaoTalk. To mark the product's second anniversary, the company is offering a 10 percent payment discount of up to 30,000 won.

"The long-term overseas stay insurance is expanding beyond study abroad and working holidays to cover a wider range of overseas living situations, including family relocations and overseas work assignments," a Kakao Pay Insurance official said. "We will continue to strengthen the coverage that people actually need abroad and develop products that are convenient to use in any overseas situation."

forest@heraldcorp.com