Hanwha Life Insurance Achieves Annual 10 Billion KRW Insurance Premium Inflow Using Big Data

Hanwha Life announced on the 3rd that it achieved an additional annual insurance premium inflow effect of 10 billion KRW by utilizing big data.

[Asia Economy Reporter Oh Hyung-gil] Hanwha Life announced on the 3rd that it achieved an additional annual insurance premium inflow effect of 10 billion KRW by utilizing big data.

Hanwha Life implemented an expansion of subscription limits using big data in May 2017, analyzing 84 million cases of approximately 1.2 million items such as customer gender, age, body mass index (BMI), drinking and smoking status, insurance premium delinquency information, and attributes of recruiting agents for 700,000 new contracts subscribed since 2011 through big data analysis.

Based on this, it developed the ‘HUSS (Hanwha Underwriting Scoring System),’ an integrated underwriting score system that predicts risk levels for each customer. This new system automatically expands the coverage limit available for customers with low risk of accidents or diseases when subscribing to protection-type insurance. The limit was expanded for high-quality customers using a big data-based predictive model.

Hanwha Life currently applies this model to a total of seven coverages: accidental death, general death, accidental hospitalization, disease hospitalization, surgery, cancer diagnosis, and adult disease diagnosis. Depending on the score calculated for each customer, the limit is expanded from 1.5 times up to a maximum of 2 times.

For cancer diagnosis insurance benefits, the maximum limit is 200 million KRW, but customers in the top 30% of scores through the big data analysis model can subscribe to cancer diagnosis insurance benefits up to 300 million KRW.

Within three years of the system’s introduction, an additional 30 billion KRW of protection-type insurance premiums flowed in. Also, the number of new contracts with expanded limits was 22,460, with more than 7,200 customers annually benefiting from the limit expansion.

A Hanwha Life official stated, "We plan to further refine big data analysis and add more detailed coverages beyond the existing seven. For cancer diagnosis coverage, we plan to provide limit expansion benefits to more customers by additionally reflecting indicators of early diagnosis possibility."

This content was produced with the assistance of AI translation services.