Insurance Research Institute "Insurance Industry Faces Risk of Dependence on Big Tech and Platform Companies"

[Asia Economy Reporter Kwangho Lee] Concerns have been raised that the insurance industry could rapidly become dependent on big tech-led platforms if it does not proactively respond to the shift toward an open financial ecosystem.

Research fellows Hyunju Noh and Jaehee Son of the Korea Insurance Research Institute stated in their report, "Changes and Implications of the Open API-Based Financial Ecosystem," that "due to the characteristics of the digital economy, the transition to an open ecosystem is likely to converge financial services into a single platform, similar to portal Naver and messenger KakaoTalk, so the insurance sector must actively prepare for this."

Open banking, an open ecosystem, is a system that stores and utilizes data held by multiple financial companies with customer consent.

The report pointed out, "If platform companies such as big tech and fintech fully enter insurance sales and brokerage services, the insurance industry could become dependent on platforms faster than other financial sectors," adding, "It is crucial for insurance companies to quickly recognize customer demand through data and respond with customized solutions."

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