Shouting "Data Economy Era"... Only Insurance Companies Refuse to Comply

Public Medical Data Use Sparks Medical and Labor Sector Backlash
"Only Benefits Private Companies' Profits"... "Concerns Are Excessive"

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Although a path has opened for insurance companies to utilize public medical data for the first time in four years, concerns are emerging that it might be thwarted again due to repeated opposition from the medical and labor sectors. Despite efforts by the government and private companies to revitalize the data economy, the insurance industry's use of data is being socially perceived with particular sensitivity.

According to the insurance industry on the 13th, the Health Insurance Corporation Labor Union issued a statement on the 11th saying, "The medical data of the people accumulated for the purpose of health insurance business has been handed over to be used for product development aimed at maximizing profits for private insurance companies," and demanded, "Immediately stop providing medical data to private insurance companies."

Last month, six companies including Samsung Life, KB Life, Hanwha Life, Meritz Fire & Marine, Samsung Fire & Marine, and KB Insurance obtained final approval from the Health Insurance Review & Assessment Service (HIRA) to use public medical data.

The Health Insurance Labor Union criticized that insurance companies requested data such as "analysis of major diseases and treatment history status of elderly patients" and "analysis of disease occurrence status and risk rates using treatment data of health insurance subscribers," arguing that these requests are focused on expanding the insurance companies' profit structure.

[Image source=Yonhap News]

The medical community is also opposing the transfer of medical information to insurance companies. The Health and Medical Organizations Coalition stated, "Insurance companies intend to use the data to launch products where insurers directly manage chronic diseases, care for patients and the elderly, and even refer medical institutions, as seen in the United States," adding, "It is unacceptable to hand over medical information to private insurance companies who desire it the most."

In response, the insurance industry rebutted that these concerns are excessive. An insurance industry official said, "By analyzing accurate information and treatment histories of elderly patients who fall into insurance blind spots, we can create customized products with appropriate coverage," and added, "While insurance premium revenue will be generated, the social role of insurance is completely disregarded in these criticisms."

In particular, the data that insurance companies can use is provided according to review procedures stipulated by law, and since it does not include personally identifiable information, there is no room for misuse. Nevertheless, opposition from the medical community continues. This is also linked to the medical community's logic in blocking the digitization of indemnity insurance claims.

Despite proposals from the insurance industry and government to digitize indemnity insurance claim documents submitted to insurance companies, the medical community has opposed for over a decade, arguing that insurance companies could misuse the accumulated medical data.

An insurance industry official expressed frustration, saying, "Even though digitizing indemnity insurance claims does not require new additional documents, opposition persists, which seems to reflect a particular sensitivity to the accumulation of insurance company data," and added, "In an era where countries around the world are actively fostering the data economy, it is frustrating to see such backward standards being applied indefinitely."

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