Insurance Companies' New Growth Area This Year: 'Healthcare'... "More Personalization Needed"

Increased Interest in Healthcare... Establishment and Strengthening of Digital Organizations
"Content and AI Capabilities Need Enhancement for Personalized Services"

[Asia Economy Reporter Minwoo Lee] Insurance companies are focusing their attention on healthcare. While the heads of each company mention it broadly in their New Year's addresses, digital organizations to support this are also being newly established. They appear to be busily moving forward with growing expectations ahead of the introduction of medical MyData (personal credit information management service). Analysis suggests that it is urgent to strengthen customized services and content capabilities to attract customers by securing independent data capabilities.

According to the insurance industry on the 13th, both life insurance companies and non-life insurance companies are looking at healthcare as their new growth engine for the new year. Shin Chang-jae, chairman of Kyobo Life Insurance, emphasized in his New Year's address that digital innovation is essential to prepare for an era of 'complex uncertainties.' To this end, he proposed building a healthcare platform. Jung Jong-pyo, CEO of DB Insurance, also announced in his New Year's address that he would discover new revenue models through healthcare. KB Insurance presented a more specific plan. Its subsidiary KB Healthcare plans to expand the 'Ocare' platform, a health asset management platform for employees within KB Financial Group, to general customers in the first half of the year.

The establishment or reorganization of digital organizations by insurance companies is also in the same context. Since capabilities to handle data are essential in healthcare, the strategy is to sharpen their focus. KB Life Insurance established the DT Headquarters to develop digital and data industry models. Shinhan Life recently established the DX Group to maximize digital competitiveness. Kyobo Life Insurance newly organized the Group Data Strategy Team at the end of last year and decided to establish new business strategies utilizing MyData.

The policy environment has also improved compared to last year. The Ministry of Health and Welfare revised the 'Non-medical Health Management Service Guidelines' last year, clearly defining health management services that non-medical institutions can provide to chronic disease patients and increasing the health management information that can be utilized. This made it possible for non-medical institutions to provide 'healthcare' services such as auxiliary monitoring of health status and guidance on lifestyle habits exclusively for chronic disease patients. Additionally, the Ministry of Health and Welfare's 'MyHealthWay' system is scheduled to officially launch this year. It is a medical field 'MyData' project that allows individuals to check their dispersed personal medical data via a smartphone app and transmit it in an integrated and standardized form to desired locations.

Challenges remain. Analysis suggests that beyond growth through external partnerships, it is necessary to enhance independent competitiveness such as artificial intelligence (AI) and data capabilities. In particular, advice has been given on the need to strengthen customized services that attract customers. However, opposition from the medical community and others has hindered the use of public medical data from the National Health Insurance Service. There are limitations in using only the medical data accessible from the Health Insurance Review and Assessment Service, making it difficult to go beyond simple 'health information.'

Kim Do-yeon, head of the Insurance Research Center at KB Financial Management Research Institute, pointed out, "Currently, due to restrictions on access to medical data and lack of AI-based recommendation capabilities, it is difficult to propose personalized services," adding, "It is necessary to develop and advance chatbots, content, and various incentives to a level that can be personalized so that customers can participate in the platform."