Consumer Behaviors in Korean Variable Insurance Market: Around the Global Financial Crisis and the COVID-19 Crisis

Abstract

We attempt to analyze the VI (variable insurance) consumers’ behavior in Korean insurance market around the global financial crisis and the COVID-19 pandemic period. We pointed out economic factors that affect VI demand, and confirmed VI demand increases with stock market boom, low interest rate, high price level, and stable economic situation. Also consumers who decide to purchase VI usually consider the size, safety and profitability of a target insurance company. The asset and equity size have positive relationship with VI sales. Also reputation in traditional insurance market helps companies to attract new VI customers. The increase in the number of sales organization and sales person positively affects VI sales. From the analysis, we notice that more risk averse VI customers would choose domestic companies. Foreign companies have very active marketing strategies using young and highly educated sales persons targeting less risk averse VI customers.