Grab the 'First' Title... Insurers Fiercely Compete for Exclusive Usage Rights

With 18 Applications in the First Half
Close to Last Year's 22 Cases
Annual Record High Expected

Targeting Marketing Advantages
in the Saturated Insurance Market
Applying for Exclusive Usage Rights

[Asia Economy Reporter Ki Ha-young] This year, competition to obtain exclusive usage rights, a type of patent right, has intensified in the insurance industry. In the first half of the year alone, the number of applications nearly matched last year's level, and the annual number of applications and acquisitions is expected to reach an all-time high.

According to the industry on the 7th, the New Product Review Committee of the General Insurance Association recently granted exclusive usage rights for three months each (June 3 to September 2) to insurance products for which Hyundai Marine & Fire Insurance, KB Insurance, and Hana Insurance applied.

Hyundai Marine & Fire Insurance obtained exclusive usage rights by developing the industry's first coverage for fetal birth risks (birth within 31 weeks) and specific high-risk maternal diseases including placenta previa in its 'Good & Good Children's Comprehensive Insurance.' KB Insurance received exclusive usage rights for the '(Non) Fluoride Application Treatment Cost (Limited to once per year)' coverage, which supports fluoride application costs for cavity prevention. Hana Insurance was granted exclusive usage rights for child abuse coverage (excluding relatives), sequelae, and civil lawsuit attorney fees in its 'Hana Wise Child Life Insurance.'

So far this year, insurance companies have applied for a total of 18 exclusive usage rights, nearly matching last year's 22 applications. Among life insurers, four companies?Mirae Asset, Hanwha, Samsung, and Tongyang Life?applied for a total of five exclusive usage rights and were granted all five. Among general insurers, eight companies?KB, Hanwha, MG, DB, Hana Insurance, Meritz, Samsung Fire & Marine Insurance, and Hyundai Marine & Fire Insurance?applied for a total of 13 exclusive usage rights and obtained 10. Compared to life insurers who handle insurance products targeting individuals, general insurers with a more diverse range of products are more active in applying for exclusive usage rights.

The first product to obtain exclusive usage rights this year was KB Insurance's new risk coverage, 'Thyroid Cancer Hormone Drug Approval Treatment Cost.' This coverage pays insurance benefits once during the insurance period if a diagnosis of thyroid cancer is confirmed and thyroid hormone drug approval treatment is received after thyroid cancer surgery. It was granted exclusive usage rights for three months. Recently, with the distribution of COVID-19 vaccines, Samsung Fire & Marine Insurance's special contract 'Emergency Medical Anaphylaxis Diagnosis Fee,' which received three months of exclusive usage rights, has attracted attention. This coverage pays 2 million KRW once a year when an anaphylaxis diagnosis is made upon visiting the emergency room.

Exclusive usage rights are a kind of patent system for insurance products. The New Product Review Committee of the Life and General Insurance Associations grants insurance companies that develop creative insurance products for consumers exclusive rights to sell the product for a certain period. Typically, exclusivity periods of 3 to 9 months are granted based on evaluations of originality, progressiveness, and usefulness. Last year, a total of 19 exclusive usage rights were approved, including 6 for life insurers and 13 for general insurers.

In the insurance industry, rather than focusing on exclusive product sales, companies are putting great effort into obtaining exclusive usage rights for sales marketing purposes. As product competition intensifies, the 'first' image through exclusive usage rights can help gain an advantage in the saturated insurance market.

An industry official said, "As product competition intensifies, companies are applying for exclusive usage rights to develop new products and utilize them in sales marketing," and predicted, "This trend is expected to continue."