(image: Korea Bizwire)
SEOUL, Aug. 5 (Korea Bizwire) — To become a winner in the future insurance market, traditional insurance companies and big tech firms are competing fiercely with a focus on dominating the service ecosystem in the health and mobility areas.
In a report released on Wednesday, the Korea Insurance Research Institute said that the competitive edge of the future digital insurance market would rely on factors like the possession of customer data and the dominance of ecosystems.
The report stressed that in an environment in which digital transformation accelerates and the market is spun off from various industrial ecosystems, it would be difficult to maintain market leadership simply with traditional product development and production capabilities.
For instance, if automobile companies establish self-driving platforms and dominate customer data, insurance companies could rapidly lose a competitive edge and lag behind in the mobility ecosystem.
It’s also possible that a relationship of symbiosis and cooperation could be formed between traditional insurance companies and big tech or fintech companies.
The report, however, said that since big tech companies dominate platforms and have an advantage in negotiation power, the role of existing insurance companies could be limited to the development and production of insurance products.
The report also suggested the possibility that the market could be reorganized in a way that traditional insurance companies focus on long-term insurance, while big tech companies deal with mini insurance products.
M. H. Lee (mhlee@koreabizwire.com)
