[Asia Exclusive] Jeong Hee-su "New Safety Net for Insurance Vulnerable Groups... Public Medical Data Must Be Opened"

The 35th President of the Life Insurance Association
"National-Level Consideration of Data Utilization"
Presenting a Big Picture of Healthcare Integration

Jung Hee-soo, Chairman of the Life Insurance Association, is being interviewed on the 5th at the Life Insurance Association in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Oh Hyung-gil] "Insurance companies should not view the use of public medical data simply as a profit-driven endeavor. It directly relates to the welfare and health promotion of the people by providing a new safety net for vulnerable groups in insurance who are in blind spots. The utilization of data must be considered at a national level."

Recently, there has been growing anticipation in the insurance industry regarding the use of public medical data. This is because, after four years, the path to utilizing public medical data is opening, allowing the creation of new roles and meanings for insurance. Jung Hee-soo, Chairman of the Life Insurance Association, emphasized that the approval for the use of public medical data will become a milestone for data sharing between the public and private sectors.

In a recent interview with Asia Economy at the Life Insurance Association office in Jung-gu, Seoul, Chairman Jung, as both the association head and an economic expert, presented a big picture of the future development of the insurance industry through data utilization and convergence with healthcare.

Chairman Jung stated, "The saturated insurance market has encountered new opportunities in the data era," adding, "By providing consumer-centered healthcare services based on data, it can have a positive effect of promoting public health and reducing the national medical expenses burden."

Jung Hee-su, Chairman of the Life Insurance Association, is being interviewed on the 5th at the Life Insurance Association in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

◆ "Data has no value when dispersed" = Chairman Jung expressed regret, saying, "Since 2014, insurance companies have created insurance products using Korea's public medical data, but in 2017, the path was completely blocked due to criticism that public data was being used for profit."

He continued, "Insurance companies have had no choice but to purchase data from foreign countries such as Japan, Taiwan, the United States, and Canada, and because the information does not fit our context, it results in higher premiums or lack of coverage in reality," he pointed out.

Last year, with the passage of the three data laws (Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act), the Health Insurance Review & Assessment Service (HIRA) approved data usage for six insurance companies in July. This marks the opening of a path to use data after nearly four years. Recently, three insurance companies have applied to the National Health Insurance Service for the use of public medical data, and the review of whether to provide it is underway.

Chairman Jung said, "We have had continuous discussions with the Ministry of Health and Welfare, HIRA, and the National Health Insurance Service, among others, and have been able to obtain quite progressive cooperation," adding, "Through the development of new products suited to the health conditions of our people and reasonable premium calculation, we can complement public insurance and play a role in the social safety net," expressing expectations for data provision.

He further emphasized, "Like MyData, which connects finance and data, a national-level data integration agency is needed to create the value of data in the future," stating, "If an agency such as a Data Management Office is established to collect and manage public institution data efficiently for integration and utilization, it will become a foundation suitable for the Fourth Industrial Revolution era." He stressed that data should not be viewed merely as a collection of information but approached from a national, grand perspective.

Regarding some concerns that public medical data provided to insurance companies could be misused for premium surcharges or denial of enrollment, he dismissed them as groundless. He said, "Because the data is strictly de-identified, re-identification is impossible, and it is already being provided to academia and some industries excluding insurance companies," adding, "To alleviate these concerns, we will establish a safe management system through the financial authorities and the Big Data Council and increase responsibility for its use."

Jung Hee-su, Chairman of the Life Insurance Association, is being interviewed on the 5th at the Life Insurance Association in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Emergence of Consumer-Centered Healthcare Services
Positive Effects in Health Promotion and Medical Cost Reduction

◆ "Government-level review needed for tax benefits on private pensions" = Chairman Jung raised aging as the next key issue after data. As Korea rapidly enters a super-aged society, retirees lack sufficient capacity to prepare for old age, which could lead to a serious crisis.

He diagnosed, "The National Pension is expected to be depleted soon, and the subscription rates for private pensions and retirement pensions are low. Moreover, the increase in life expectancy outpaces the pension receipt period, making old-age preparation grossly insufficient." According to the Korea Insurance Research Institute, as of 2018, the subscription rates for retirement pensions and pension savings were only 51.3% and 12.3%, respectively. The average annual pension amounts were merely 16.43 million KRW and 2.93 million KRW, respectively.

Chairman Jung said, "To ensure old-age income security, active tax benefits should be provided to increase subscription rates for private and retirement pensions," adding, "We will also promote the development of products that can offer bonus-like benefits when private pensions are maintained long-term."

◆ Active support for insurance companies' overseas expansion: "Global companies must emerge" = He evaluated that the recent shift in the financial investment industry to include principal-guaranteed products in the default option for retirement pensions will greatly help workers' old-age stability.

He emphasized, "Retirement pensions are a very important source of income for old-age life, so profitability and stability must be considered together," adding, "We will mandate the presentation of products including principal-guaranteed types through stable management and establish a system to satisfy workers' demand for stability."

He also revealed plans to prepare support measures at the association level to help insurance companies expand overseas beyond the saturated domestic market. In March, the Life Insurance Association signed a Memorandum of Understanding (MOU) with the Korea Trade-Investment Promotion Agency (KOTRA) and life insurance companies to support overseas expansion.

Chairman Jung stated, "Global companies must be born in life insurance as well," adding, "To target overseas markets, it is crucial to understand trends of foreign insurance companies, and we will share good information with the industry."

Jung Hee-su, Chairman of the Life Insurance Association, is being interviewed on the 5th at the Life Insurance Association in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

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