[The Future of Insurance in the Data Era] Personalized Financial Education, Healthcare... Insurance Penetrates Everyday Life

(Financial Data Aggregation to Leap into Lifestyle Platform
China Expands to Car Maintenance and Sales
US Develops Scores Based on Credit Information
Korea Actively Preparing for MyData Business)

[Asia Economy Reporter Oh Hyung-gil] Behind the growth of China Ping An Insurance Group, which has established itself as a global insurance company in just over 20 years since its founding, lies data. By enhancing data analysis capabilities, the company is expanding its platform from insurance to lifestyle touchpoints.

They provide vehicle repair cost estimates linked to auto insurance and have expanded to vehicle maintenance and sales services. They also operate a healthcare platform by linking personal medical and insurance data. Rather than merely selling insurance, they are evolving into a comprehensive service provider covering all aspects of daily life.

Insurance companies are seeking to leap into lifestyle platforms based on financial data. Leveraging the expertise accumulated in insurance, which deals with diseases, disasters, and various accidents occurring in daily life from a financial perspective, new opportunities to offer diverse lifestyle services are opening up.

With the full-scale implementation of financial MyData (personal credit information management service), which collects personal credit information to provide customized services, insurance companies are actively preparing to introduce new services.

◆ "In the U.S., the relationship between personal credit information and mortality rates is also analyzed" = It is expected that once insurance companies secure diverse data, it will immediately become an opportunity to strengthen the competitiveness of their core insurance business.

In the U.S., where data utilization started early, insurance companies calculate premiums based on personal credit information. They have developed credit-based insurance scores used for underwriting and rate setting in home and auto insurance. Global insurer Discovery has analyzed customer data for over 20 years and found a strong correlation between customer health management grades and financial management grades, with higher customer grades linked to lower insurance loss ratios.

In South Korea as well, it is expected that if insurance companies secure diverse data, they can differentiate premium calculations or segment underwriting conditions.

In particular, the industry believes this will be a weapon to counter the entry of big tech (large information and communication companies) and platform companies into insurance.

Kakao General Insurance has announced plans to start operations as early as next year, and Naver Financial is also preparing to launch insurance-related services. To alleviate concerns that insurance companies will become subordinate to customer-friendly large platforms, expanding their own customer base is more important than anything else. Expanding business areas through MyData is a timely necessity.

Business expansion is possible through health prediction using insurance claim information, linkage with healthcare services, development of personal credit evaluation models based on insurance subscription information, as well as data sales or data consulting services.

◆ Obtaining full MyData license... Domestic insurers are making swift moves = Starting with Kyobo Life Insurance, the first in the insurance industry to obtain the full financial MyData license, Shinhan Life and KB Insurance have acquired preliminary licenses.

Kyobo Life aims for "MyData encompassing culture (non-financial) and finance" and is pursuing partnerships with various businesses. They plan to provide credit score inquiries, real estate and vehicle price information, and offer customized financial education services. They have established collaboration systems with Kyobo financial affiliates, Seoul National University Business Research Institute, and the Youth Entrepreneurship Foundation.

Shinhan Life is expected to link the healthcare services it has focused on developing with MyData. Through collaboration with Shinhan Financial affiliates, differentiated asset management and credit information services will also be possible. KB Insurance is preparing personal asset management services and healthcare linkages based on collaboration at the KB Financial Group level.

No Hyun-joo, a research fellow at the Korea Insurance Research Institute, suggested, "The platform market and data business triggered by MyData are areas that insurance companies have not experienced before, so careful preparation is necessary. To transition into a comprehensive lifestyle financial platform, continuous investment in strengthening data analysis capabilities and artificial intelligence (AI) from a long-term perspective is also required."

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