Dramatic Changes
Researcher Kim Seok-young at the Korea Insurance Research Institute remarked on February 14 that artificial intelligence (AI) is expected to take the place of insurance planners within five years and the development of advanced technology will trigger a sea change in the insurance industry in the near future as seen in this case.
“Car insurance and non-life insurance in general cannot remain as they are in the future, when cars are driven by AI and traffic accident reports are automatically filed,” he mentioned, continuing, “Exactly the same applies to coverage insurance with the main purpose of medical practice changing from treatment to prevention and control based on the development of the IoT and biotechnology, in which insurers should come up with whole new types of insurance products combined with healthcare services.” He went on to say, “In addition, the development of big data is likely to give rise to more personalized insurance products.”
According to the researcher, the insurance industry is likely to face a whole new environment in the 2020s. Fukoku Mutual Life Insurance Company in Japan recently decided to adopt an AI system that calculates insurance premiums based on medical record analysis.
“Regulations on the financial health of insurers, customer protection and the like need to be overhauled so that the fourth industrial revolution and the insurance industry can have a win-win relationship,” Kim stressed, adding, “The Insurance Business Act should be comprehensively reviewed in relation to other laws such as the Medical Act and the Personal Information Protection Act.”