Sales of variable insurance policies more than double in Q1

SEOUL, July 13 (Yonhap) -- Sales of variable insurance policies more than doubled in the first quarter of this year as local stock markets reported robust gains, industry data showed Thursday.

The first premium for variable insurance policies, which invest part of the funds they control in stocks and bonds, rose to 545.5 billion won (US$477.2 million) during the January-March quarter, compared with 215.2 billion won for the same three-month period last year, according to the data by the Korea Life Insurance Association.

South Korea's main Korea Composite Stock Price Index (KOSPI) has gained some 17 percent so far, compared with the first trading day of this year.

Life insurers had been luring customers with variable insurance policies, pointing out that such products could guarantee a high return.

Customers also appeared to invest in variable insurance policies as a hedge against inflation amid a record-low interest rate, industry watchers said.
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