KIDI "Will Open the Way to Simplify Real-Expense Insurance Claims"

Holding a Press Conference for the 100th Day of Inauguration

[Asia Economy Reporter Minwoo Lee] Heo Chang-eon, President of the Korea Insurance Development Institute, emphasized that he will properly fulfill the role of the intermediary agency for simplifying claims of indemnity health insurance.

On the 14th, President Heo held a press conference marking 100 days since his inauguration in Yeouido, Yeongdeungpo-gu, Seoul, and stressed this point. Simplifying indemnity claims has been a long-standing issue in the insurance industry with no progress for over 10 years. The government has also announced plans to select an intermediary agency in the first half of this year and implement the system from the second half.

President Heo stated, "A vast amount of information is concentrated at the Korea Insurance Development Institute, but not a single security incident has occurred," and added, "Considering the aggregation of insurance company information and the possibility of misuse or leakage, I am prepared to take on the role of the intermediary agency for indemnity claims."

Once the simplification of indemnity claims is implemented, the process of visiting hospitals to obtain paper documents such as medical receipts and diagnosis certificates and submitting them to insurance companies will no longer be necessary. Several amendments to the Insurance Business Act have been proposed over the past decade to promote this, but they have repeatedly failed due to opposition from the medical community. The medical sector rejected the Health Insurance Review & Assessment Service (HIRA), which was considered as the intermediary agency for indemnity claims, from accessing hospital and clinic treatment records. This is also why voices from the political sphere are calling for the Korea Insurance Development Institute to be designated as the intermediary agency for indemnity claims.

He also revealed the main business plans for this year, including ▲ responding to the digital transformation through big data linkage and convergence, and insurtech ▲ digital transformation of insurance industry infrastructure such as the Comprehensive Information System for Disaster Safety Mandatory Insurance (covering 61 types including disaster compensation) and the Automobile Repair Cost Online Service (AOS) platform.

First, the Korea Insurance Development Institute plans to combine its own insurance information with financial and non-financial data from other institutions to promote 'product development, customer management, and channel analysis.' Through this, insurance companies can analyze the subscription status of financial products by income level by combining insurance information with financial data (such as banks), and develop insurance products that prepare for longevity risk in case of insufficient retirement income for consumers.

Additionally, they plan to support the digital transformation of insurance companies' claims adjustment operations by utilizing the Automobile Repair Cost Online Service (AOS) platform. They will build a hyper-connected environment among 'insurance companies - repair shops - parts dealers - glass repair companies - rental car companies - consumers' related to automobile insurance repairs, and provide an integrated service covering the entire automobile repair process including accident reporting, vehicle intake, repair cost claims, claims adjustment, and parts verification.

Furthermore, efforts will be made in ▲ comprehensive consulting related to new accounting and supervisory standards (IFRS17, K-ICS) ▲ supporting the expansion of new markets such as insurance for people with pre-existing conditions and pensions/nursing care insurance in response to an aging society, as well as pet insurance ▲ strengthening moral hazard management including clinical treatment guidelines for minor injuries in automobile insurance and treatment volume for minor injury patients.

Heo Chang-eon, President of the Korea Insurance Development Institute, is speaking at a press conference marking 100 days since his inauguration in Yeouido, Yeongdeungpo-gu, Seoul. (Photo by Korea Insurance Development Institute)