South Korea's financial regulations are hampering insurers' efforts to secure a next growth engine.

Foreign insurance companies have been launching various insurance products combining healthcare services in the global market. However, domestic insurers have been unable to do so due to regulations, according to a commentary in Business Korea.

The commentary said that it would be a win-win if insurance companies could reduce premiums for customers who work out hard for a healthy lifestyle. But this possibility has remained unrealised for years with local financial authorities unwilling to come forward to untangle the complicated problems among ministries and interest groups.

An official from the life insurance industry said, “Under the current circumstances, insurance companies and startups can’t but shoulder legal risks in order to enter the healthcare market. They are providing just a very basic level of healthcare services.”

Nevertheless, the government said it would issue a “manual on healthcare based on non-medical services” shortly and revise related guidelines in September so that insurance policyholders can be offered wearable devices.