Insurance Industry and Platform Providers Conflict over ‘Insurance Return’ Service

Oct 31, 2018

Tensions are growing between insurance companies and platform providers as they conflict over ‘insurance return’ service that returns hidden insurance back to consumers.
Insurance companies are out to put on the brakes on platform providers such as GoodRich and Toss that obtain information from insurance companies’ platforms through scrapping technology. They are insisting on intention of insurance return service and options of consumers respectively.
According to relevant industries, Korea Life Insurance Association (KLIA) recently requested platform providers such as Toss and GoodRich to refrain their insurance return services.
KLIA is claiming that these return services are being utilized as marketing for these platform providers and that they do not coincide with intentions of platform providers. Also, it requested them to use links rather than platforms of insurance companies to continue their services.
“Some are pointing out that insurance return services that were introduced by financial authorities and insurance industry are being utilized as marketing tactics for platform providers.” said a representative for KLIA. “We requested platform providers to provide their services through links and to stop their advertisements.”

Insurance Industry and Platform Providers Conflict over ‘Insurance Return’ Service

Insurance return service is a service that finds hidden insurance and it was introduced by financial authorities and insurance industry in last December. From a corresponding site, one can inquire breakdown of insurance and hidden insurance. Corresponding service had returned $1.88 billion (2.1426 trillion KRW) of hidden insurance back to an owner until the end of June.
Platform providers are opposing such requests by KLIA. They are claiming that the fact that KLIA is requesting them to stop using scrapping technology, which is not illegal, violates options of consumers.
Although they have put down some of their advertisements, they are claiming that they will only consider to stop using scrapping technology only when KLIA presents them with legal basis.
“We partially agreed to KLIA’s request of putting down advertisements regarding insurance return service.” said a representative for GoodRich. “Because financial authorities recently announced that scrapping technology does not conflict with legal problems related to protection of personal information, there is no clear reason for us to stop our services.”
Staff Reporter Park, Yoonho | yuno@etnews.com

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