'Samsung Life's Big Data Business with 8.2 Million Customers... Insurance Company's Surprising Side Venture (Comprehensive)'

26 Ancillary Tasks This Year... Four Times Last Year
Health Management & M&A Advisory as 'New Growth Engines'
Swift Steps to Overcome Aging Population and Low-Interest Rate Crisis

[Asia Economy Reporter Oh Hyung-gil] Samsung Life Insurance, with 8.2 million customers, has entered the big data consulting and sales business. It is the second company in the industry to do so after KB Insurance. Through big data that combines customers' credit information and external data in a de-identified form, the company can provide commercial area analysis or marketing consulting services or sell related data. Earlier, AIG Insurance reported consulting services related to mergers and acquisitions (M&A) starting from the 5th.

This year, insurance companies have been actively entering ancillary businesses. The number of ancillary business applications submitted by the third quarter has exceeded four times that of last year.

As the core insurance market has reached saturation, this is interpreted as a 'strategic detour' to find a blue ocean. Some interpret it as evidence that the insurance industry is sensing limits in profit generation due to aging populations and low interest rates.

According to the Financial Supervisory Service and related industries on the 6th, the number of ancillary business applications submitted by insurance companies reached 26 as of the end of September. This is a significant increase compared to only 6 cases last year.

Excluding 2011, when the Insurance Business Act was amended to allow insurance companies to engage in ancillary businesses as long as they do not negatively affect management soundness, policyholder protection, or financial market stability (26 cases), this is the largest scale. Insurance companies can start ancillary businesses by reporting the details to the Financial Supervisory Service at least 7 days before commencing the business.

As ancillary business reports have increased recently, financial authorities plan to ease regulations to allow insurance companies to engage in financial businesses authorized, permitted, or registered under other laws, or to conduct the same ancillary businesses already reported and operated by other insurance companies without prior notification.

"In the past, entry into ancillary fields was limited, but recently strategic entries have increased"

Especially this year, unlike before, active entry into new fields such as big data and healthcare is taking place.

AIA Life, after registering 'health management services' approved by the Financial Services Commission, operates 'AIA Vitality' with SK Telecom, analyzing big data such as user physical characteristics, lifestyle habits, and health information. Through entry into health management services, they plan to launch services that provide subscription fees and offer rewards or insurance premium discounts related to lifestyle services such as air travel, accommodation, shopping, and entertainment.

Samsung Life Insurance, which reported 'consulting and dataset sales using big data' as an ancillary business, signed a business agreement last month with fintech company BankSalad for financial data exchange. Both companies agreed to share information on subscribed products and insurance premiums with customer consent. It is expected to strengthen guarantee analysis consulting and integrated asset management services.

KB Insurance plans to jointly promote 'healthcare' services that provide comprehensive health management based on customers' health information with the Credit Information Center and Financial Security Institute, designated as data combination specialized support institutions, as well as 'MyData' services that collect scattered financial transaction information for consumers to view at a glance.

The insurance company that reported the most ancillary businesses this year is Orange Life. It applied for three cases including personal loan brokerage services, card product-related advertising agency services, and financial product and service advertising agency services. Ahead of its integration with Shinhan Life Insurance in July next year, it has laid the groundwork to create synergy with Shinhan Financial Group affiliates such as banks and cards.

Ancillary businesses based on core operations are also notable. Hanwha Life and Hanwha General Insurance provide trademark licensing services for the financial brand 'LifePlus,' and Korean Re, aiming to expand overseas business, has started overseas subsidiary management consulting and auditing services. Carrot General Insurance, which applied AI video recognition technology to mobile phone insurance, applied for non-face-to-face device damage verification technology services.

Skory Insurance registered management consulting and support services related to accounting and actuarial work and operation of a health promotion service platform. Heungkuk Life and Heungkuk Fire & Marine Insurance applied for credit loan brokerage services that introduce financial institution loan products to insurance subscribers and receive brokerage commissions.

An insurance industry official explained, "In the past, ancillary businesses were truly secondary fields such as advertising agencies or loan brokerage with low profitability, but recently strategic entries have increased."