Insurers hop on digital health care bandwagon

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Insurers hop on digital health care bandwagon

Published: 03 Oct. 2023, 15:09 Updated: 03 Oct. 2023, 17:51

SHIN HA-NEE
shin.hanee@joongang.co.kr

A staff member at the Try Everything 2023 startup fair demonstrates a digital workout device at Dongdaemun Design Plaza in central Seoul on Sept. 14. [NEWS1]

Mr. Kim, a 43-year-old office worker, made it his routine to walk 10,000 steps every day.

And every day, he opens Samsung Life Insurance’s mobile app “THE Health” to participate in an online walking challenge to enter a daily prize draw. By checking his step count on the app once a day, he gets to spin a roulette and win up to 3,000 won ($2.20).

“It helps to motivate me because I can compare my daily step count with other users, and though it’s just pocket money, there’s some fun in the challenge,” said Kim.

THE Health is one of 10 digital health care services available in Korea provided by local insurers, a notable increase compared to just four offered in 2019.

Insurance companies are jumping on the rising demand in digital health care services, as Korea, like the rest of the world, grows older.

In 2018, Samsung Fire & Marine Insurance became Korea’s first insurance company to enter the digital health care realm. Its service, named “Anyfit Plus,” offers a health monitoring feature that analyzes health checkup data from the last 10 years to predict the user’s chance of getting sick in the next 10 years. The service also hands out points when the user achieves certain workout goals, which can be used to pay insurance fees or at gas stations.

KB Insurance has also invested an additional 30 billion won in its health care subsidiary KB Healthcare in August, established in November 2021. Its “O’Care” app, which has been providing health care services to KB employees, will be made available to the general public this year.

The digital health care sector has been on a constant uptrend worldwide. The global digital health care market is expected to reach $509 billion by 2027, from $153 billion in 2020, according to market tracker Global Industry Analysts.

Insurance companies overseas are also tapping into the rising demand with their own digital health care services. Beam, a U.S. dental insurance startup, uses data collected via smart toothbrush devices to develop dental insurance products. China’s ZhongAn Online P&C Insurance cuts insurance fees for those who are managing diabetes well, based on data collected through a glucose monitor.

However, Korean companies are faced with red tape and regulations regarding sensitive personal information and the use of medical devices. Health care services, therefore, often become identical to one another, providing similar, rather simple features such as dietary analysis or walking challenges.

“Even a simple blood pressure measurement is categorized as a medical practice, which can only be carried out by doctors or nurses, and it is not easy for insurance companies to hire medical professionals,” said a source from the insurance industry, adding that “compared to overseas companies, there are still a lot of limitations on Korean services for further expansion.”

Jeon In-yong, a researcher at KDB Future Strategy Research Institute, said that “as many leading countries such as the United States, Germany and Japan are making legislative changes to foster the digital health care industry, Korea also needs to come up with policy measures to support the sector.”

BY KIM KYUNG-HEE [shin.hanee@joongang.co.kr]