Life and Non-Life Insurance Market in South Korea - Growth, Trends, and Forecast (2020 - 2025)

The market is segmented by Insurance type (Life insurance and Non-Life insurance) by Distribution Channel (Direct, Agency, Banks and others)

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

Less Than 4 %

Major Players:

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Market Overview

  • The Life and Non-Life insurance market in South Korea are estimated to grow at a CAGR of approximately 4% during the forecast period.
  • Korean life insurers in FY2018 saw their current net income rise by 3.0% year on year to KRW 4.03 trillion. At the same time, they recorded a loss of KRW 335.2 billion, a drop of KRW 10.8 trillion (103.2%) year on year as claims paid surged while premium income decreased slightly. As insurance business weakened and guaranteed insurance risks diminished, the provision of liability reserves also dropped by KRW 8.66 trillion (27.1%), which helped reduce operating losses. In the meantime, investment profits reached KRW 24.11 trillion, up by KRW 2.11 trillion (9.6%) year on year as a result of an increase in interest income and dividend income. Premium income in FY2018 decreased by 2.7% year on year to KRW 110.84 trillion, whereas claims paid in FY2018 increased to KRW 86.07 trillion, up 8.4% (KRW 6.63 trillion) compared to the previous year. There were 9.74 million new individual insurance policies in FY2018, up 1.4% year on year, recording KRW 252.77 trillion of new business value, down 8.0% compared to the previous year. the new business value of general annuity insurance sharply declined, while pure endowment insurance also plummeted by 32.0% to KRW 20.91 trillion.
  • In FY 2018, direct premiums written by general insurers posted 2.2% growth over the prior year amounting to KRW 80,287.0 billion. The net premiums earned2) increased by 2.6% over the previous year to KRW 78,875.7 billion. The amount of direct claims paid to policyholders in FY 2018 increased by 13.8% over the prior year, totaling KRW 33,474.2 billion. The amount of net claims paid increased by 13.0% over the previous year to KRW 31,753.8 billion. In FY 2018, the amount of net incurred loss increased by 3.6% over the prior year to KRW 65,137.3 billion. The Loss ratio rose by 0.8%p from 81.8% of the prior year to 82.6% due to an increase in the loss ratio of auto insurance (5.6%p) and P&C insurance (3.6%p) despite an improved loss ratio in long term insurance.

Scope of the Report

This report aims to provide a detailed analysis of the Life and Non-Life insurance market in South Korea. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the Life and Non-Life insurance market in South Korea.

By Insurance type
Life insurance
Individual
Group
Non-Life Insurance
Home
Motor
others
By Dstribution Channel
Direct
Agency
Banks
Others

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Key Market Trends

Constant increase in vehicle sales:

The number of vehicle registration has constantly increased over the past four years. Last year, it grew by 3.0 %, respectively 2.7 % for personal vehicles and 7.9 % for commercial vehicles, personal vehicles had the largest share with 80.5% in 2018, followed by trucks with 15.5 %, and buses with 3.6 %. Expenses incurred by automobile have decreased by 5.1 %. Automobile insurances have constantly been in deficit for a long time. Especially, the underwriting result of the automobile insurance has declined to the previous year, recorded -725 billion won in 2018 However, its growth rate declined since 2015 due to economic uncertainty.

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High insurance penetration as per the percentage of GDP:

Insurance penetration in the Korean insurance market was a remarkable 11.2% in 2018 which placed it 5th in the world and 3rd in Asia. Much like insurance density, life insurance had a higher penetration rate at 6.1% compared to non-life insurance at 5.1%. Insurance density reached USD 3,465 in 2018 which placed Korea into 17th place overall in the world. Life and non-life insurance density totaled USD 1,898 and USD 1,567 respectively.

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Competitive Landscape

The report covers the major players operating in the Life and Non-Life insurance market in South Korea. The market is Consolidated due to the top 3 companies hold approximately 47% market share. The market is expected to grow during the forecast period due to many factors.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance type

      1. 5.1.1 Life insurance

        1. 5.1.1.1 Individual

        2. 5.1.1.2 Group

      2. 5.1.2 Non-Life Insurance

        1. 5.1.2.1 Home

        2. 5.1.2.2 Motor

        3. 5.1.2.3 others

    2. 5.2 By Dstribution Channel

      1. 5.2.1 Direct

      2. 5.2.2 Agency

      3. 5.2.3 Banks

      4. 5.2.4 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 National Health Insurance Service

      2. 6.3.2 Samsung Fire & Marine Insurance Co., Ltd.

      3. 6.3.3 Hanwha Life Insurance Co., Ltd.

      4. 6.3.4 Hyundai Marine & Fire Insurance Co., Ltd.

      5. 6.3.5 Kyobo Life Insurance Co., Ltd.

      6. 6.3.6 Nonghyup Life Insurance Co., Ltd.

      7. 6.3.7 KB Insurance Co., Ltd.

      8. 6.3.8 Korean Reinsurance Company

      9. 6.3.9 Meritz Fire & Marine Insurance Co., Ltd.

      10. 6.3.10 Mirae Asset Life Insurance Co., Ltd.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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