Focus on the South Korean Economy's Life Sector: Anticipated Growth
The South Korean insurance industry is poised for growth, with the life insurance sector leading the charge, according to the latest news from research and consulting firm GlobalData.
In the report, Swarup Kumar Sahoo, an Associate Analyst at GlobalData, discusses the growth prospects in the South Korean life insurance industry. The industry is forecast to grow at a Compound Annual Growth Rate (CAGR) of 3.1% from KRW182.7 trillion ($139.8 billion) in 2025 to KRW206.2 trillion ($157.9 billion) by 2029, in terms of direct written premium (DWP).
The growth of the South Korean life insurance industry is influenced by demographic changes of the last 30 years or so of modernisation. The population aged 65 years and older in South Korea is estimated to reach 20.8% in 2025, a factor that is expected to drive demand for life insurance products.
Meanwhile, the South Korean general insurance industry is projected to grow at a CAGR of 3.4% from KRW 218.3 trillion ($167.1 billion) in 2025 to KRW 249.7 trillion ($191.2 billion) in 2029, in terms of direct written premiums (DWP). Motor insurance remains the largest line of business, expected to account for 58.7% of the general insurance DWP in 2025. Liability insurance is the second-largest, with an estimated 13.5% share, followed by personal accident and health insurance, accounting for 7.8%.
The report also highlights the role of collaboration between automakers and insurers on embedded insurance products for electric vehicles (EVs) in expanding coverage uptake and supporting steady growth in the South Korean general insurance market. The increased market penetration due to the popularity of digital distribution channels and the usage-based insurance models is also expected to contribute to the growth of the industry.
The South Korean general insurance market is expected to see an annual growth of 2.8% in 2025, supported by a surge in liability premiums and a steady rise in health and personal accident lines. This growth is expected to continue, with the market projected to reach KRW39.1 trillion ($29.1 billion) by 2029.
According to GlobalData, the South Korean general insurance industry remains positive, with a projected acceleration in premium growth over the next five years. The introduction of sliding-scale premiums for medical expense insurance in South Korea, starting July 2024, will further support the growth of the personal accident and health insurance line.
In conclusion, the South Korean insurance industry is set for steady growth, with the life insurance sector leading the charge. The growth is driven by demographic changes, increased market penetration, and collaboration between industries. The latest report from GlobalData provides a comprehensive snapshot of the growth prospects in the South Korean life insurance industry.
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