Noise Persists in Insurance Comparison Recommendation Platform... Can It Launch Next Year?

Agreement Reached on Standard API Adoption... Conflicts Over Details
Insurers "Sufficient Information" VS Fintech "Need More"
Can't Even Start Digging... January Launch Uncertain

An insurance comparison recommendation platform is struggling to even break ground ahead of its scheduled launch in January next year. It appears that the power struggle between insurance companies and the fintech industry is prolonging. There are concerns that the January launch itself may become uncertain.

According to the industry on the 1st, insurance companies and the fintech industry agreed to introduce a standard Application Programming Interface (API) to provide information to the insurance comparison recommendation platform, but differences over the details have not been resolved.

An API is a standard for exchanging various data. To operate an insurance comparison recommendation platform, an API agreement between the platform operator and insurance companies is necessary. Fintech companies operating the platform have demanded APIs for each insurance company, but the insurers have insisted on a standard (unified) API. Their reasoning is that without a unified standard, development time and costs to meet the information requirements of each company would increase, leading to inefficiency and making a quick launch difficult. Fintech companies have opposed this, arguing that standardized information makes it difficult to provide customized information to consumers. To mediate this, the Financial Services Commission has been operating a consultative body since July, involving the Insurance Association, insurance companies, the Fintech Industry Association, and fintech companies, and on the 15th of last month, they agreed on a 'standard API.'

Initially, insurance companies welcomed this. They stated that the standard API resolves information gaps by providing insurance premium calculations and individual insurance company special contract information, enabling 'customized recommendations.' An industry insider explained, "Individual APIs inevitably require significant resources for development due to the construction of individual lines with various data formats for each company, and there are concerns about the dominance of some large fintech companies with significant influence. The standard API will include all coverage and special contract information operated by insurance companies, so combining this with the capabilities of each business operator can certainly provide diverse customer experiences."

However, the fintech side still claims it is insufficient. They argue that, in addition to simple premium calculations, premium verification and subscription contract information are necessary. Therefore, while there is agreement on using the standard API itself, the contents to be included in the standard API require further discussion. A fintech industry official said, "Since a memorandum of understanding (MOU) has not yet been signed among stakeholders, there is still a long way to go, and discussions on what detailed contents to include in the standard API need to proceed. At the current level of the standard API, there may be little difference from the past insurance companies' comparison recommendation page 'Damoa.'"

If this conflict continues, there are concerns that the launch of the insurance comparison recommendation platform itself could be delayed. Although the Financial Services Commission designated the insurance comparison recommendation service as an innovative financial service and allowed it from January next year, less than four months remain. In a situation where the 'first groundbreaking' of agreeing on the standard API has not been properly done, tasks such as deciding on the insurance products to be included in the platform and the commissions to be provided to the platform remain. An industry insider pointed out, "Even if development starts immediately, it is uncertain whether various user interfaces (UI) and comparison analysis algorithms can be completed before January. Since this service was started for consumers, a magnanimous decision from both sides is necessary."