| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | |
| CAGR | 4.50% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Motor Insurance Market Analysis by Mordor Intelligence
The South Korea Motor Insurance Market is expected to register a CAGR of greater than 4.5% during the forecast period.
COVID-19 had a significant impact on almost all sectors of the economy, with the motor insurance market being one of the most affected. As far as loss ratios are concerned, the effects on motor insurance appear to be largely positive. Insurance companies that provide auto insurance coverage have benefitted from the pandemic, as fewer driving incidents have resulted in fewer insurance claims. The motor insurance loss ratio for January to September 2021 in Korea stood at 79.4%, a decrease of 5.6% from the same period in 2020 when the pandemic began in earnest in Korea. The incidence rate for motor insurance claims has significantly decreased since 2020.
Korea's motor insurance market is facing challenges and opportunities as the mobility sector continues to evolve. Premium growth was muted at 2% for the auto segment in 2022, while the combined ratio improved slightly by 0.5 percentage points to 96.9% for the segment. AM Best expects the auto segment to continue to experience pressure on the combined ratio as claims frequency returns to normal after the pandemic and inflation-driven increases in vehicle repair prices and the minimum wage. However, increased online sales and new regulations that limit traffic accidents are expected to help insurers sustain overall profitability. Long-term insurance (LTO), the biggest business segment in the Non-Lifes industry, remained stable at around 4% growth in 2022, driven by continued growth in the recurring premium portfolio and solid new business growth from health products.
As per laws of the South Korean auto insurance industry, it is necessary for every car that has an engine displacement size of at least 50 ccs. Mopeds and vehicles that are less than 50 ccs are not liable to be insured as per the auto insurance laws of South Korea. Thus, compulsory motor insurance plays an important role in promoting the motor insurance market in South Korea.
South Korea Motor Insurance Market Trends and Insights
Rises in adoption of electric vehicles is driving the growth of the motor insurance industry
The motor insurance market is facing both challenges and opportunities as the mobility sector continues to evolve. In Korea, the number of registered EVs increased by 68.4 percent to 389,855 as of the end of 2022, compared to the previous year. EVs still account for 1.5% of total registered vehicles, but their share has been growing rapidly in recent years. This growth is expected to continue as EV sales increase due to advances in battery technology, increasing consumer awareness of environmentally friendly lifestyles, and government efforts to encourage carbon neutrality and encourage EV adoption, such as battery subscription services, which will reduce the cost of an EV, as well as financial incentives, such as tax credits, and direct purchase subsidies, to encourage EV sales.
An estimated 157,000 electric vehicles (EVs) were insured in Korea in 2022, which represents 0.9% of the total number of cars insured under personal motor insurance policy. The number of EVs insured has been increasing steadily lately, which is in line with the increase in the number of EVs in the country. The CAGR of EVs insured in Korea is 59.3% from 2018 to 2022, whereas the total number of vehicles insured in personal motor insurance increased by an average of 2.7% each year during the same period. Foreign cars made up 35.8% of EVs insured in 2022, which is an increase from 19.6 % in 2018.
Due to the new and fast-changing nature of electric vehicle (EV) technology, insurers have found it difficult to offer adequate insurance coverage to EV drivers at affordable prices. However, the increase in EVs also opens up new business opportunities. Korean insurers have created and published motor insurance riders for EV drivers that allow them to expand or modify their car insurance coverages. These riders include covers for EV battery replacement, additional repair costs for EVs, longer distance towing in case of EV breakdown or failure, and risks associated with charging EVs (fire, explosion, electrocution).
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In the future, a new growth sector for internet insurance will likely emerge
The online insurance segment is witnessing the fastest growth in South Korea's motor insurance market during the forecast period. Owing to the ease of buying an online insurance policy, guidance is provided regarding discounts, offers, and plans by aggregators like Policybazaar, boosting the confidence of consumers in buying online insurance. Also, the growing penetration of the internet is contributing to the growth of this segment. The initiative was taken by the Insurance Regulatory and Development Authority to permit insurers to conduct video-based KYC, supporting the growth of online insurance.
Purchasing personal auto insurance online has become increasingly popular in Korea over the past 5 years. Premium revenue from the online distribution channel, also known as the cyber marketing channel (CM), more than doubled between 2018 and 2022, rising from KRW 4.03 to 4.5 billion.
Car insurance is one of the most standardized policies. Compared to other insurance products, it is much easier for consumers to buy personal auto insurance online directly without the help of an insurance agent. In particular, the need to enter a set of vehicle data that is necessary for pricing an auto insurance policy is removed from the online insurance application process. The system provides all the necessary vehicle information at the same time only with the input of the vehicle registration number. This vehicle information data service was created by the Korea Insurance Development Institute (KIDI) in 2019. It made it easier for consumers to shop for car insurance online.
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Competitive Landscape
The report covers the major players operating in the South Korea Motor Insurance Market. The market is Consolidated due to the top 4 companies holding more than 50% market share. The market is expected to grow during the forecast period due to the increase in insurance penetration of the non-life segment, and many other factors are driving the market.
South Korea Motor Insurance Industry Leaders
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Samsung Fire & Marine Insurance Co., Ltd.
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Hyundai Marine & Fire Insurance Co., Ltd.
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KB Insurance Co., Ltd.
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Korean Reinsurance Company
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Meritz Fire & Marine Insurance Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2022: Korean Re entered into a coinsurance agreement with Samsung Life concerning the life insurer's liabilities worth KRW 500 billion on October 28, 2022. The agreement came after the two parties discussed and analyzed the merits and effects of the deal for about a year. The recent agreement with Samsung Life marked Korean Re's second coinsurance business following the deal with Shinhan Life in January 2022, which went to prove how much competitive edge we had in the domestic market over other global reinsurers.
- May 2022: The South Korea-based Carrot General Insurance Corp., which was the first licensed digital insurance carrier in the country, announced the execution of a memorandum of understanding (MoU) with the Korea Transportation Safety Authority (TS). The MoU is one of the examples of a public-private partnership campaign that aimed at validating Carrot's technology with the Korean Government. This was within the vision of the company to upgrade the road safety and traffic management systems and help the TS in the deployment of automobile-related government policies, procedures, technology, and resources.
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South Korea Motor Insurance Market Report Scope
This report aims to provide a detailed analysis of the South Korean motor insurance market. 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 South Korean motor insurance market.
South Korea Motor Insurance Market is segmented by Insurance Product (Private Automobile Insurance, Business Automobile Insurance, Commercial Automobile Insurance, and Motorcycle Insurance), by Insurance Coverage (Compulsory Insurance and Voluntary Insurance), and by Distribution Channel (Agents, Banks, Brokers, and Others). The report offers market size and forecasts for the South Korea Motor Insurance Market in value (USD) for all the above segments.
By Insurance Product
| Private Automobile Insurance |
| Busines Automobile Insurance |
| Commercial Automobile insurance |
| Motorcycle Insurance |
By Insurance Coverage
| Compulsory |
| Voluntary |
By Distribution Channel
| Agents |
| Brokers |
| Banks |
| Other Distribution Channels |
| By Insurance Product | Private Automobile Insurance |
| Busines Automobile Insurance | |
| Commercial Automobile insurance | |
| Motorcycle Insurance | |
| By Insurance Coverage | Compulsory |
| Voluntary | |
| By Distribution Channel | Agents |
| Brokers | |
| Banks | |
| Other Distribution Channels |
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Key Questions Answered in the Report
What is the current South Korea Motor Insurance Market size?
The South Korea Motor Insurance Market is projected to register a CAGR of greater than 4.5% during the forecast period (2025-2030)
Who are the key players in South Korea Motor Insurance Market?
Samsung Fire & Marine Insurance Co., Ltd., Hyundai Marine & Fire Insurance Co., Ltd., KB Insurance Co., Ltd., Korean Reinsurance Company and Meritz Fire & Marine Insurance Co., Ltd. are the major companies operating in the South Korea Motor Insurance Market.
What years does this South Korea Motor Insurance Market cover?
The report covers the South Korea Motor Insurance Market historical market size for years: 2024. The report also forecasts the South Korea Motor Insurance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South Korea Motor Insurance Market Report
Statistics for the 2025 South Korea Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Motor Insurance analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
