[1mm Finance Talk] Insurance Companies Ignite "Exclusive Usage Rights" Competition Early in the Year... Focus on Women's Health and Dementia

Ten Applications for Exclusive Use Rights Already Filed This Year, 2.5 Times More Than Last Year
Promoting Product Competitiveness and Gaining First-Mover Advantage
New Products Surge in Response to Low Birth Rates, Aging Population, and Companion A

At the beginning of the year, insurance companies are actively seeking to secure exclusive usage rights. Their strategy appears to be to develop proprietary riders, promote product competitiveness, and gain a first-mover advantage in attracting customers.

According to the life and non-life insurance industries as of January 23, the number of riders for which insurance companies have applied for exclusive usage rights as of the previous day was 10, a 2.5-fold increase compared to 4 cases during the same period last year. Exclusive usage rights are monopoly sales rights granted after a comprehensive evaluation of originality, innovation, and usefulness. These rights are granted for a minimum of three months and up to 18 months.

Among life insurers, Kyobo Life was the first to pursue exclusive usage rights this year. On January 14, Kyobo Life applied for exclusive usage rights to the Life Insurance Association's New Product Review Committee for its "Non-Participating Rider for Coverage of Specific Uterine Diseases." This rider provides benefits such as diagnosis payments and insurance coverage for ultrasound examinations related to specific uterine diseases, including uterine leiomyoma, other benign neoplasms, and endometriosis. A Kyobo Life representative explained, "We have developed, for the first time in the industry, a benefit related to ultrasound examinations, which are essential for diagnosing common conditions such as uterine fibroids in women."

On January 15, Shinhan Life applied for exclusive usage rights for its "Shinhan Tontine Annuity Insurance." The tontine annuity is a financial product designed by Lorenzo de Tonti, an Italian banker from the 17th century. In this structure, the pension amount received by surviving participants increases as other participants pass away. Recently, Shinhan Life introduced a product that addresses the shortcomings of this structure for the first time in Korea, allowing policyholders to receive a portion of the insurance payout even if they die before the pension begins. A Shinhan Life representative stated, "We have presented a new pension paradigm that goes beyond the limitations of traditional annuities by combining risk-sharing and incentives."

Hanwha Life applied for exclusive usage rights for its "Non-Participating Cartilife Surgery Coverage Rider." Cartilife surgery refers to "pellet-type autologous costal cartilage-derived chondrocyte transplantation," named after Cartilife, a knee joint regeneration treatment. Hanwha Life pays out insurance benefits if the insured receives Cartilife surgery during the policy period. The aim is to reduce the burden of expensive new medical technology treatments.

Among non-life insurers, Heungkuk Fire & Marine Insurance was the first to pursue exclusive usage rights on January 15 for its "Non-Participating MRI Examination Support Benefit During Targeted Dementia Drug Approval Treatment." This rider is the first in the industry to cover up to three MRI examinations for monitoring during targeted dementia drug approval treatment. Following its previous achievement of securing exclusive usage rights for nine months last year with a dementia new drug treatment rider, Heungkuk Fire & Marine Insurance has now obtained a six-month exclusive usage right for another dementia-related rider.

Hanwha General Insurance applied for exclusive usage rights this month for six types of coverage included in its "Signature Women's Health Insurance 4.0." Major coverages include insurance payouts for pregnancy, examination costs to improve implantation rates for infertility treatment, and diagnosis benefits for menopause caused by treatment. For the first time in the industry, the company also introduced coverage for "legal expenses due to domestic violence." In the case of divorce lawsuits due to domestic violence, the coverage supports 10 million won per trial stage, up to a maximum of 30 million won.

Last year, the number of exclusive usage rights acquired by life and non-life insurers reached a record high of 55, a 66.7% surge compared to 33 cases the previous year. An industry insider commented, "Recently, exclusive usage rights tend to be granted for longer periods for products related to low birth rates, aging populations, and companion animals," adding, "Insurance companies are realizing that similar products no longer offer a competitive edge, so they are making significant efforts to develop new products through in-house idea contests and other initiatives."