The General Insurance Association of Korea announced on May 20 that it will push for a "good consumption campaign" jointly with 18 non-life insurance companies to support small business owners who are suffering from the COVID-19 pandemics.
While the non-life insurance industry is also experiencing an increase in insurance contract termination and a decrease in new contracts owing to the prolonged pandemics, 18 non-life insurers plan to execute a total of 16.7 billion won (some $13.7 million) early to stimulate consumption and boost the sluggish local economy.
First of all, the insurers will actively participate in the government's good consumption campaign by purchasing office supplies and small items necessary for work in advance and making pre-payment to restaurants near the company (3.09 billion won) and will also contribute to promoting consumption of local commercial districts by providing welfare funds for executives and employees scheduled to be executed in the second half of the year (4.94 billion won) in the first half.
In addition, they plan to provide local specialties or local gift certificates (6.09 billion won) to recruit organizations, including life planners who are struggling in the business line owing to the pandemics, as well as provide "Onnuri" gift certificates to executives and employees (2.09 billion won) to help revive the local economy and traditional markets.
Meanwhile, the non-life insurance industry plans to conduct additional 3.7 billion won worth of social contribution activities for the vulnerable, who are having a harder time because of the outbreak of COVID-19.
Kim Yong-duk, chairman of General Insurance Association of Korea, said, "We hope that our non-life insurance industry's 'good consumption campaign' will be of any help to those who are suffering from COVID-19."
The chairman also said, "We will continue to prepare with the non-life insurance industry to faithfully fulfill our original role and social responsibility as a 'social safety net'."