[Asia Economy Reporter Oh Hyung-gil] With the enforcement of the 'Data 3 Laws' related to personal information protection in August, it is analyzed that the provision of personalized insurance services will be activated and competition among insurance companies to attract customers will intensify.
According to the report "Impact of the Amendment of the Data 3 Laws on Insurance Companies" released by the Korea Insurance Research Institute on the 1st, the amendments to the three data-related laws including the Personal Information Protection Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, and the Credit Information Act were passed by the National Assembly in January and are scheduled to be enforced from August.
The report interpreted, "The principles of personal information protection under the Personal Information Protection Act have been relaxed, adding the clause that 'if the purpose cannot be achieved through anonymization, processing by pseudonymization shall be allowed,'" and "the use of pseudonymized information for purposes such as scientific research, statistical compilation, and public interest record preservation is permitted."
It further predicted that with the definition and scope of use of pseudonymized and anonymized information established, data linkage and disclosure between institutions will become possible, facilitating the development of new insurance products, underwriting review, and rate improvement, as well as improving the related academic research environment.
Additionally, it pointed out that insurance companies can develop new insurance products or improve rate systems by utilizing combined information.
The report stated, "With a better understanding of areas where insurance was not previously provided, such as insurance for those with pre-existing conditions, new insurance product development is possible," and forecasted that underwriting review and rate system improvement, rate segmentation, and advanced underwriting review will be feasible.
It added, "As insurance companies can more easily verify insurance contract information of multiple policyholders, competition among insurance companies to attract customers may intensify," and "Upon the introduction of the MyData business, many insurance companies can check the contract information of those who have consented to provide personal information to the MyData Bank and competitively offer insurance contract analysis and remodeling services."
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