Insurance Companies Eagerly Awaiting 'Public Healthcare Data Utilization'

Difficult Approval from HIRA Obtained
Now the National Health Insurance Service Holds the Power

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Insurance companies are facing another hurdle ahead of utilizing public medical data. After barely obtaining data provision approval from the Health Insurance Review & Assessment Service, the National Health Insurance Service has now taken control.

According to the insurance industry on the 8th, the National Health Insurance Service plans to hold a second review committee meeting on the 14th to review the provision of public medical data requested by three insurance companies: Hanwha Life, Kyobo Life, and Hyundai Marine & Fire Insurance.

The meeting will discuss related matters through a debate involving both supporters and opponents of using public medical data. At the review committee held last month, approval was deferred, and insurance companies were reportedly asked to supplement specific materials regarding the purpose of medical data research.

Insurance companies expect to develop products suited to Korea’s circumstances or calculate premiums rationally by utilizing public medical data. Since the suspension of health and medical data provision in 2017, they have been creating insurance products or calculating premiums using data imported from overseas, which does not align with domestic conditions, and they believe this issue can be resolved.

However, voices opposing data provision have also emerged. Including the medical community, civic groups, and the National Health Insurance Service labor union, they demand that approval not be granted, arguing that allowing insurance companies to use public health medical data would destroy the health insurance system. They are concerned that sensitive personal medical information could be leaked and that insurance companies might misuse medical information to restrict individuals’ insurance enrollment.

The insurance industry maintains that since the data provided is de-identified sample data and is supplied according to the National Health Insurance Service’s data provision procedures, leakage is impossible. They argue that medical data is currently provided to research institutions and pharmaceutical companies, and only insurance companies are being held to a stricter standard.

In particular, the Health Insurance Review & Assessment Service, which approved the use of public medical data by insurance companies in August, stated that de-identified information that cannot be tracked or identified personally is analyzed through a closed network, and only the results are taken, making identification impossible.

Accordingly, the insurance industry hopes that the ‘Big Data Council,’ involving financial authorities, the Health Insurance Review & Assessment Service, the National Health Insurance Service, and consumer groups, will be activated promptly. An insurance industry official said, "Since re-identification or misuse of information is punishable under the Personal Information Protection Act, it is impossible for insurance companies to use the data arbitrarily," adding, "A broad discussion is needed to find ways to use the data safely."

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