Healthcare Services by Insurance Companies Expanding Nationwide... Market Battle Anticipated

Allow Healthcare and MyData Companies to Provide Health Management Services to General Public Beyond Insured Subscribers and Own Subsidiaries

[Asia Economy Reporter Ki Ha-young] In the future, insurance companies will be able to provide health management services not only to policyholders but also to the general public. It is expected that competition in health management services will intensify, including managing blood pressure, blood sugar, diabetes, and recommending exercise and diet.

On the 17th, according to financial authorities and the industry, the Financial Services Commission announced that it will promote the "activation of healthcare services" that the public can feel through the Digital Finance Council and the operation of the Insurance Sector Healthcare Activation Task Force (TF). The scope of ancillary business was expanded to allow insurance companies to provide health management services such as blood pressure and blood sugar management and diabetes prevention to the general public, not just insurance product subscribers.

So far, insurance companies have provided healthcare services mainly in two ways: health management services and health promotion-type insurance products. Based on information such as smoking, obesity, and cholesterol, they calculate a health age and offer discounts on insurance premiums related to cancer, brain, and heart diseases according to the health age grade. They provide health management services by collecting and analyzing health data in real time through wearables and smart devices. Representative examples include Samsung Fire & Marine Insurance's integrated health management service "Anyfit 2.0," Hanwha Life's personal health information-based health management service application (app) "HELLO," Kyobo Life's app "Kare," Shinhan Life's "Health Note Service," and AIA Life's healthcare platform "AIA Vitality."

The domestic healthcare service market is still in its early stages but shows clear growth. The number of contracts for health promotion-type insurance products was 68,516 in 2018, but 480,000 contracts were signed in the first half of this year alone. Over the past three years, 840,000 contracts for health promotion-type insurance products have been concluded, expanding the market.

Additionally, the Financial Services Commission plans to revise the Enforcement Decree of the Insurance Business Act in the first half of next year to improve the system allowing insurance companies to own healthcare specialized companies or subsidiaries related to MyData. If insurance companies incorporate healthcare or MyData companies as subsidiaries, they will be able to utilize data throughout the entire process, including necessary product development, customer analysis, and premium calculation, to provide multidimensional and comprehensive services.

The insurance industry welcomes this direction. A representative from the insurance industry said, "With the allowance for insurance companies to provide healthcare services to the general public, it is expected that a wider variety of healthcare services will be launched due to economies of scale." He added, "The activation of healthcare services in the insurance industry will not only improve insurers' loss ratios but also enable a win-win situation for the public, the nation, and insurance companies through reduced medical expenses across society due to improved public health and job creation from the growth of the healthcare industry."

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