Global insurance companies provide InsurTech services that recommend which exercises and food a person needs and send accurate and personal health analysis and recommendations in real-time to their customers. These global companies are starting to apply InsurTech to various accident preventive programs.
According to Korea Insurance Research Institute (KIRI), global insurance companies are introducing many services based on InsurTech.
In health insurance field, Vitality is recommending optimal exercises and food to their customers. It measures activities of its customers through connected devices such as Fitbit.
A startup established by a musician provides virtual medical service through its application that allows its customers to get in touch with doctors by paying monthly fees.
Besides these companies, Generali attaches a device inside of a car and warns drivers whenever they drive dangerously while RSA and Aviva attach water leak detection devices to piping systems of houses and reduce possible damage by detecting possible water leak in advance.
Amount of foreign investments into InsurTech is rising continuously. Actually, amount of foreign investments into InsurTech rose from $370 million in 2012 to $2.21 billion in 2017.
InsurTech industry expanded its market through businesses such as Lemonade and others that combine every services early on. However, now it is expanding its market through product development and sales, acquisition, and damage assessment. Amount of investments is expected to rise continuously as traditional insurance companies are showing more interests in these areas.
However, South Korea’s InsurTech industry is still in an infant stage. Although there are products from health insurance and auto insurance that provide lower insurance fees depending on abilities to control risks, sales of these products are low.
In case of health insurance, most of InsurTech services provide or refund points when a person achieves his or her goal in walking, running, or calorie consumption. Although there are programs that provide discounts based on driving in case of auto insurance, number of these programs is relatively low.
These situations are directly related to regulations on insurance companies. Due to current insurance laws, there are limitations on expanding InsurTech services since insurance companies’ business regulations are based on positive methods. As a result, some claim that there is need to ease relevant regulations while not disrupting market order.
“There is a need to consider revising relevant systems so that insurance companies can develop products and provide services that will increase level of convenience for consumers and develop South Korea’s insurance industry.” said Senior Researcher Kim Kyu-dong of KIRI. “If relevant regulations are eased while not disrupting market order, we expect that conditions where insurance companies can provide comprehensive risk management services that consumers want will be established.”
Staff Reporter Park, Yoonho | yuno@etnews.com