Demand for earthquake insurance rises

Following the tremors in Gyeongju, North Gyeongsang province, sales of earthquake insurance have skyrocketed. Insurance companies that had halted selling this line of business resumed sales after the aftershocks, amid increasing criticism.

Local insurers said they have been getting hundreds of phone calls inquiring about earthquake insurance, following the 5.8-magnitude earthquake on September 12, according to the Korean Times. Some insurers including Dongbu, KB and Hanwha had been offering protection against earthquakes, but most of them had stopped selling it following the tremors. As the cessation led to consumer complaints, they agreed to resume selling the insurance.

A spokesman for Dongbu Insurance explained that the company had stopped selling earthquake insurance because the country was still going through aftershocks.

“As the aftershocks were continuing, new subscriptions to earthquake insurance were meaningless. It would be like subscribing to car insurance while a car accident was ongoing. As the insurance companies are free from obligations in such cases, the new subscribers wouldn’t be able to receive compensation even if they sustained damage from the aftershocks. We had stopped selling it so as not to confuse consumers.”

Amid growing complaints that customers were being left without means of resort when insurance was most needed, however, Dongbu and the other insurers resumed selling it.