On July 2, the Financial Services Commission (“FSC”) held a meeting regarding “promoting insurance products and services for health improvement” during which the FSC announced plans to promote insurance products and services designed for health improvement. 

First, insurance companies will be allowed to directly provide health management services in two phases.  “Health management services” include services to check health information through wearable devices, heath improvement advice through consulting regarding physical training, nutrition and sleep and non-medical consulting to chronically ill people with high blood pressure or diabetes.  In Phase 1, commencing from the second half of 2019, insurance companies will be allowed to provide health management services for their existing policyholders as an ancillary business.  In Phase 2, commencing from the second half of 2020, insurance companies will be allowed to provide health management services to the general public other than policyholders, but only if no negative effects are observed following Phase 1. 

In addition, the FSC will amend applicable regulations to allow insurance companies to provide customers with health management devices, such as wearable devices that can monitor and calculate the health improvement effect.  Concerned that such health management devices may become the subject of fierce competition among insurance companies to attract customers, the FSC will set a cap of KRW 100,000 for the cost of the device. 

Together with the foregoing efforts, the FSC intends to amend the Enforcement Decree of the Credit Information Use and Protection Act, to allow insurance companies to collect and utilize health information for the purpose of providing health management services.  

FSC Chairman, Jong-Ku Choi, further announced that the Commission plans to continuously supplement relevant financial laws and regulations to promote insurance products and services for health improvement.