Increasing share of mail-order car insurance? Reasons!


Mail order auto insurance is cheap and easy to apply for insurance premiums, so the needs of a wide range of age groups are increasing. In addition, due to the influence of television commercials, the recognition of mail order auto insurance is increasing year by year.

The share of mail-order auto insurance is expected to rise further in the future and, in particular, major national non-life insurance companies are taking various steps, such as expanding coverage, including the amount of insurance. And strengthen road services … It has been done. This time around, I’ll explain the mail-order auto insurance industry share and trends, and why.

About the size of the automobile insurance market

First, let’s take a look at the net premium income for the entire non-life insurance industry in 2017. Net premium income is an indicator of the performance of a non-life insurance company and equates to sales. non-life insurance company.


According to the Japan General Insurance Association, net premium income for the non-life insurance industry as a whole in 2017 was approximately 8,380.6 billion yen, of which net premium income for insurance of automobiles were approximately 4,110.2 billion yen. In other words, the share of net auto insurance premium income in the non-life insurance industry as a whole is roughly half and increasing year over year.

Furthermore, more than 80% of net premiums are shared by the four main non-agency life insurance companies, and it can be said that they currently hold a monopoly position in the industry. On the other hand, although the size of the market will expand due to the entry of non-life insurance companies from abroad and the decrease in the rate of car ownership of young people, competition between companies is expected to intensify. The expansion of mail-order auto insurance, which is one reason for the market expansion, is said to significantly change the structure and services of the non-life insurance industry. In these circumstances, non-life insurance companies have begun to manage several new plans for existing clients and to develop mail-order auto insurance services to acquire new clients in order to maintain their existing market share. You can see some ingenuity.

Share of mail-order automobile?

Although the number of mail order auto insurance underwriters is increasing year over year, annual premium income is only about 10% of agency auto insurance, which is overwhelmingly small, and there are major insurance companies other than those. of life. Urgent need to respond to customer development.

Among the major non-life insurers that have managed to gain a share of the mail order market, there are not only premium reductions and better quality of road and call center service, but also flexibility in the choice of passengers conceived as such … be sure to see it.

Additionally, overseas affiliated non-life insurance companies focused on mail-in auto insurance provide services not found in domestic companies, establish a position in the industry, and propose plans that meet the needs of each age group. … Some insurance companies other than life do. Mail order auto insurance coverage is increasing in regions with a high percentage of car owners, but it is a first in metropolitan areas and other metropolitan areas where public transportation other than the car is well developed. Subscriber acquisition is a problem for all companies.

What is the trend of mail-order automobile insurance and why is it supported?

As for the mail order auto insurance trend, the number of subscribers has been on the rise in recent years, mainly in the 1920s and 1950s who mainly use PCs and smartphones. On the other hand, there are a certain number of drivers aged 70 and over who renew their contracts with conventional agency type auto insurance, and mail order auto insurance for all generations will increase profits on non-insurance. domestic and foreign life. Business. Penetration is an important point.

Mail order auto insurance is preferred because the entire registration process can be completed online and there is no need to go to the actual store for monthly premium payments or contract plan details. It has the appeal of being easy to manage from home.

Money order auto insurance premiums are 10-30% cheaper than agency type auto insurance and are suitable for those who want to reduce the burden on their home. Additionally, some non-life insurance companies that handle mail-in auto insurance offer services such as providing optional services and lowering insurance premiums over a period of time as benefits to new subscribers. The number of consumers interested in attractive mail-order auto insurance, such as insurance, low premiums and exclusive services, is increasing year over year. In these circumstances, when switching from conventional agency type auto insurance to mail order type when renewing the contract, it is necessary to carefully weigh important points such as product content and payment methods from multiple companies. Insurance fee.

Is the mail-order type (direct) with low insurance premiums inferior to the agency type?

Mail order type (direct) is not less than agency type

Some people worry that cheaper online (direct) car insurance will be less than agency-type car insurance, but there are online (direct) costs, such as store costs and agency fees. By reducing the amount of insurance, we will achieve reasonable insurance premiums.

Also, many insurance companies that handle mail-order (direct) auto insurance can use Internet discounts, so insurance premiums are cheaper.

Therefore, the mail order type (direct) with low insurance premiums is not inferior to the agency type.

Another feature of the mail order (direct) type is that as premiums decrease, there are more options to increase compensation.

However, if you choose the type of mail order (directly) in which you do the registration procedure yourself, you need time to understand and consider what kind of compensation is required beforehand.

There are some differences in coverage & road services for each company. Car insurance is in the event of an accident. There is no point in not getting sufficient compensation in the event of an accident.

It is important to carefully consider not only the insurance premium, but also the coverage, check with the insurance company window for any unclear points, and select satisfactory insurance.


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