Big Data Era Has Begun... Insurance Companies Just Watching Medical Data (Comprehensive)

Medical Data Firmly Locked... Private Sector Utilization Stalled
Blocked by 'No Profit Use' Rule... Unclear Whether Information Will Be Provided

[Asia Economy Reporter Oh Hyung-gil] Although there is increasing demand in the insurance industry to utilize public medical data, progress remains stalled due to the principle of 'no commercial use allowed.' Last year, the so-called 'Data 3 Act' was amended to allow the use of pseudonymized information that cannot identify individuals, but the provision of information is still uncertain.

According to the insurance industry on the 26th, the Institutional Review Board (IRB) under the Ministry of Health and Welfare selected and processed applications from three companies?Hanwha Life, KB Life, and Meritz Fire & Marine Insurance?out of ten life and non-life insurers that applied for the use of public medical data last month.

They are undergoing IRB review to apply for permission to use public medical data from the Health Insurance Review & Assessment Service (HIRA). The IRB is an organization that reviews whether research involving humans, human-derived materials, embryos, etc., is ethically and scientifically valid, and it is responsible for reviewing the use of public medical data.

The remaining insurers plan to supplement their documents and reapply soon. However, the insurance industry is not confident that the first case of public medical data utilization will emerge within this year.

Even if approval is obtained from the IRB, another review by HIRA is required. An insurance industry official said, "The IRB review has been prolonged due to multiple rounds of additional supplementation," adding, "It does not seem likely that the HIRA review will proceed smoothly either."

▲Health Insurance Review & Assessment Service and Korea Pfizer.

The reason for these cumbersome procedures dates back to 2017. In the past, insurers developed various products and services using medical data held by HIRA and others, but after a National Assembly audit criticized insurers for using HIRA data for commercial purposes, data utilization was completely banned. As a result, insurers had to rely on overseas data to develop insurance products.

However, in January last year, the Data 3 Act?which includes the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act?was amended, establishing a foundation for the use of public medical data. Subsequently, in March, the Personal Information Protection Commission issued an authoritative interpretation stating that "the use of pseudonymized health and medical information by insurers to develop new insurance products falls under the 'scientific research' purpose under the Personal Information Protection Act," paving the way for data utilization.

The insurance industry explains that if public medical data can be utilized, they will be able to develop products that cover new risks such as infertility tests and treatment costs or surgeries applying new medical technologies, and launch exclusive products for patients with chronic conditions like hypertension and diabetes as well as the elderly, thereby addressing blind spots in insurance coverage.

Professor Hong Seok-cheol of Seoul National University emphasized at the 'Insurance Industry Innovation Measures in the Era of Data Economy' seminar held by the General Insurance Association on the 25th with academia, "To overcome challenges faced by the non-life insurance industry, it is essential to develop services that enhance consumer benefits such as healthcare," adding, "The introduction of innovative services like big data-based digital healthcare and health management services promotes public health and contributes to reducing health insurance finances."

Professor Lee Sung-yeop of Korea University said, "The focus should be on utilization of data. However, I agree that social trust is necessary, and efforts to eliminate concerns are needed, but these concerns should not hinder benefits or reduce data utilization," adding, "I hope that utilization will be promoted promptly so that the industry can contribute to public health improvement."

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