"Mandatory Identity Verification in Medical Institutions: A New Catalyst for Insurance Marketing?"

Medical Service Act mandates medical institutions to comply with identity verification requirements

As of May 20, 2023, the revised Article 12, Section 4 of the National Health and Medical Service Act mandates medical institutions to comply with identity verification requirements. In response, a major telecommunications company has developed AI-based identity verification kiosks and is supplying them to hospitals. This new development could serve as a catalyst for insurance marketing. This article explores the implications of this law and how the AI kiosks may impact insurance marketing strategies.

On May 20, 2023, the National Health and Medical Service Act was amended to require medical institutions to adhere to identity verification protocols. In line with this new regulation, a major telecommunications company has developed AI-based identity verification kiosks, which are being supplied to hospitals. This development presents new opportunities for insurance marketing.

The AI-based identity verification kiosks feature functions such as comparing ID photos with facial recognition and fingerprint scanning, enabling verification without additional staff. This capability helps reduce labor costs and provides benefits such as enhanced information security, stability, quick handling of malfunctions, and prompt after-sales service.

Notably, these kiosks come with an additional feature: insurance claim processing services. The company MC Media and the telecommunications giant are collaborating to offer this service. The insurance claim processing will be provided through third-party consent to designated General Agencies (GAs). MC Media is currently in discussions with companies like M Financial Services, A-Plus Asset, AT Asset, and Inka Financial Services, with plans to launch the service in August.

New Marketing Opportunities

The strengthening of personal data protection laws and the implementation of financial consumer protection regulations have led to the suspension of home shopping insurance and insurance broadcasts, while YouTube and blog marketing have also faced difficulties. In the insurance market, acquiring databases (DBs) is crucial but expensive, with costs rising to between 70,000 to 250,000 KRW per case.

With the implementation of the Mandatory Identity Verification in Medical Institutions Act, the insurance market is exploring various strategies to secure DBs. These include establishing partnerships with hospitals to have on-site representatives for insurance claim assistance and collaborating with kiosk providers to set up kiosks in hospitals.

Kiosks offer the advantage of generating DBs from hospital visitors, addressing current challenges in DB utilization. Specific methods of utilizing these kiosks include replacing existing kiosks with ones equipped for identity verification or installing kiosks without requiring insurance representatives on-site. Patients can use these kiosks to apply for insurance claim processing, generating valuable marketing DBs and facilitating easier information verification and consultations.

The ability to operate marketing activities specific to each hospital allows for a stable and continuous sales environment and opens up opportunities for organizational expansion through the recruitment of additional staff for hospital marketing.

If insurance sales teams are already stationed at hospitals, they can use the kiosks to guide insurance claim submissions and offer additional services such as coverage analysis consultations.

MC Media, which oversees GA selection, marketing DB operations, and future second-phase marketing strategies, is led by CEO Oh Chun-sung, known for his expertise in insurance marketing DB creation. His experience includes planning mobile phone loss insurance and implementing insurance broadcast strategies. The integration of kiosks in hospital marketing reflects the complex application of MC Media’s infrastructure and is gaining significant attention in the insurance market.

CEO Oh stated, “AI-based identity verification kiosks will provide new opportunities for hospital marketing in the insurance sector. They will not only facilitate marketing in conjunction with the elderly care market but also serve as a platform for the insurance industry to venture into asset trust services in line with the aging population.”

The implementation of the Mandatory Identity Verification in Medical Institutions Act and the introduction of AI-based kiosks represent a significant development in insurance marketing. The innovative technology promises to offer new marketing opportunities and reshape strategies. Observing how these technologies are utilized and how they impact the insurance market will be crucial in the coming months.