Policy-driven insurance products fall flat with consumers

A 62-year-old business owner surnamed Park, who has been behind the wheel for 34 years, recently learned he could have qualified for a discount on his auto insurance by participating in the government’s vehicle rotation program, a temporary energy-saving measure introduced during heightened concerns over global oil supplies following the U.S.-Iran conflict.

But he doesn’t think he missed much.

“I didn’t see much point in going through the hassle for a temporary policy rider that could disappear at any time,” Park said.

“And even if I qualified, the discount would have been only about 10,000 won ($6.80) a year.

It simply wasn’t worth it.” Introduced by nonlife insurers in May at the request of financial authorities, the special rider offered a 2 percent discount on annual auto insurance premiums to motorists who voluntarily complied with the government's five-day vehicle rotation program, under which private vehicles were asked to stay off the road one designated weekday based on their license plate numbers.

To qualify, drivers had to submit proof of compliance, but for m ...